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 for failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA). These sanctions include suspending the businesses’ PACA licenses and barring the businesses’ principal operators from engaging in PACA-licensed business or other activities without USDA approval.

The following businesses and individuals are currently restricted from operating in the produce industry:

• Sasita Produce LLC, operating out of Vestavia Hills, Ala., for failing to pay a $137,262 reparation award in favor of a Texas seller. As of the issuance date of the reparation order, Severo Perez was listed as the member and manager of the business.
• Fresh Produce Point LLC, operating out of Tampa, Fla., for failing to pay a $12,752 reparation award in favor of a Texas seller. As of the issuance date of the reparation order, Michael Webb was listed as the business manager.
• Inter Connect Fresh LLC, operating out of McAllen, Texas, for failing to pay a $31,512 reparation award in favor of a Texas seller. As of the issuance date of the reparation order, Jose S. Ruiz was listed as the sole 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 more information, contact Penny Robinson-Landrigan, Chief, Dispute Resolution Branch, at (202) 720-2890 or [email protected].