WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has imposed sanctions on three produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a recent press release, the following businesses and individuals are currently restricted from operating in the produce industry:
- Green House Dominican Imports Corp., operating out of Hialeah, FL, for failing to pay a $65,080 award in favor of a Texas seller. As of the issuance date of the reparation order, Maribel Batista and Cristhian J. Holguin were listed as the officers, directors and/or major stockholders of the business.
- Edgar Espinoza, doing business as Espinoza Always Fresh, operating out of Camarillo, CA, for failing to pay an $8,485 award in favor of a California seller. As of the issuance date of the reparation order, Edgar Espinoza was listed as the sole proprietor of the business.
- JRJ Enterprises Inc., operating out of Haskall, NJ, for failing to pay a $6,306 award in favor of a Connecticut seller. As of the issuance date of the reparation order, James E. Machuca 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.
The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.
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.
