WASHINGTON, DC – The U.S. Department of Agriculture (USDA) has imposed sanctions on five produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a recent USDA press release, the following businesses and individuals are currently restricted from operating in the produce industry:
- Excell Prod., Inc., operating out of Los Angeles, CA, for failing to pay a $15,526 award in favor of a California seller. As of the issuance date of the reparation order, Wing Tsan was listed as the officer, director, and major stockholder of the business.
- Torres Produce, operating out of Delano, CA, for failing to pay a $23,820 award in favor of a California seller. As of the issuance date of the reparation order, Jose L. Torres and Angelica Torres were listed as the officers, directors, and/or major stockholders of the business.
- Edgar Garzon, doing business as GSP Distributors, operating out of Los Angeles, CA, for failing to pay a $7,466 award in favor of a California seller. As of the issuance date of the reparation order, Edgar Garzon was listed as the sole proprietor of the business.
- Legacy Produce Inc., operating out of Santa Cruz, CA, for failing to pay a $38,818 award in favor of a California seller. As of the issuance date of the reparation order, Sue S. Herfurth and Ken G. Herfurth were listed as the officers, directors, and/or major stockholders of the business.
- Penny Tsigaris, doing business as Manavi Produce, operating out of Oceanside, NY, for failing to pay a $117,544 award in favor of an Arizona seller. As of the issuance date of the reparation order, Penny Tsigaris was listed as the sole proprietor of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables.
The 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.
In the past three years, the USDA resolved approximately 3,700 PACA claims involving more than $66 million. Its experts also assisted more than 7,100 callers with issues valued at approximately $100 million. These are just two examples of how the USDA continues to support the fruit and vegetable industry.
