WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has imposed sanctions on three 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).
Direct from the USDA Agricultural Marketing Service:
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 USDA.
The following businesses and individuals are currently restricted from operating in the produce industry:
- E&RRR LLC, operating out of Jonesboro, Ark., for failing to pay a $9,110 award in favor of a California seller. As of the issuance date of the reparation order, Reynaldo Cano and Efren Montano were listed as members and managers of the business.
- Otto Brehm Inc., operating out of Yonkers, N.Y., for failing to pay a $12,361 award in favor of a Pennsylvania seller. As of the issuance date of the reparation order, Ernest G. Brehm, Jr., and Michael W. Brehm were listed as the officers, directors and/or major stockholders of the business. Linda Tritto was also listed as a principal of the business at the time of the order. However, Linda Tritto has been found not responsibly connected to Otto Brehm Inc. at the time of the violation.
- Blue Light Produce LLC, operating out of Charlottesville, Va., for failing to pay a $93,322 award in favor of an Arizona seller. As of the issuance date of the reparation order, Christopher J. Meduri was listed as the member 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 the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
For contact information, and to read the release in its entirety, click here.
