WASHINGTON, DC - The U.S. Department of Agriculture (USDA) recently imposed sanctions on four 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:
- Marlon Abarca, doing business as New Water Co., operating out of Rancho Cucamonga, California, for failing to pay a $13,248 award in favor of a Texas seller. As of the issuance date of the reparation order, Marlon Abarca was listed as the sole proprietor of the business
- J. Mendez Produce, operating out of Los Angeles, California, for failing to pay a $2,000 award in favor of a California seller. As of the issuance date of the reparation order, Jose Mendez was listed as the sole officer, director, and stockholder of the business
- Global Import With MK, operating out of Atlanta, Georgia, for failing to pay a $36,032 award in favor of a Texas seller. As of the issuance date of the reparation order, Mikael Fede was listed as the sole member of the business
- Bonimex Produce NYC Corp., operating out of Woodside, New York, for failing to pay a $1,536 award in favor of a New York seller. As of the issuance date of the reparation order, Rene Cortes Alonso and David Alonso were listed as the members 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.
