WASHINGTON, DC - The United States Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA). These sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from the USDA.
Direct from the USDA Agricultural Marketing Service:
The following businesses and individuals are currently restricted from operating in the produce industry:
- FNT Produce Co., operating out of Los Angeles, California, for failing to pay a $13,043 award in favor of a California seller. As of the issuance date of the reparation order, Frank P. Aguirre was listed as the officer, director, and major stockholder of the business
- Mexamers, operating out of Brooklyn, New York, for failing to pay a $14,901 award in favor of a New Jersey seller. As of the issuance date of the reparation order, Reuben Aguliar was listed as the officer, director, and major stockholder of the business
- California Fruit 183 Corp., operating out of New York, New York, for failing to pay an $11,824 award in favor of a New York seller. As of the issuance date of the reparation order, Eugenio Alberto Cepin was listed as the officer, director, and major stockholder of the business
- Fruteria El Campesino, operating out of Aloha, Oregon, for failing to pay a $57,643 award in favor of a California seller. As of the issuance date of the reparation order, Carlos Garcia, Maria L. Garcia Pineda, and Salvadore G. Galvan were listed as members of the business
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables.
USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it, as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders, may not be employed by or affiliated with any PACA licensee without USDA approval.
By issuing these penalties, USDA continues to enforce prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
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