WASHINGTON, D.C. - The USDA has barred three produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a USDA press release, the following businesses and individuals are currently restricted from operating in the produce industry:
- Unique Produce Corp, a Riverside, California-based company, has allegedly failed to pay a $26,180 award in favor of a California seller. As of the issuance date of the reparation order, Jose (Joe) L. Cardenas and Gerard A. Corros were listed as the Officers, Directors, and/or major stockholders of the business.
- Michael J. Navilio and Son Inc., a Chicago, Illinois-based company, was named for failing to pay an $11,401 award in favor of a Minnesota seller. As of the issuance date of the reparation order, 5420 Cermak Rd. II LLC, James Navilio and Patricia K. Navilio were listed as the Officers, Directors, and/or major stockholders of the business.
- Top Choice Produce Inc., a Bronx, New York-based company, has purportedly failed to pay a $102,938 award in favor of a North Carolina seller. As of the issuance date of the reparation order, Robert H. Guiliano was listed as the Officer, Director, and major stockholder of the business.
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 4,250 PACA claims involving more than $77 million. USDA experts have also assisted more than 7,000 callers with issues valued at approximately $110 million. Individuals, including sole proprietors, Partners, members, Managers, Officers, Directors, or major stockholders may not be employed by or affiliated with any PACA licensee without the approval of the USDA. The Agricultural Marketing Service, PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.
