WASHINGTON, D.C. - The USDA has imposed sanctions on three produce businesses for failure to pay reparation awards issued under PACA.
According to a USDA press release, the following businesses and individuals are currently restricted from operating in the produce industry:
- Brooklyn, NY-based New Farm Inc., for failing to pay a $45,614 award in favor of a Texas seller. As of the issuance date of the reparation order, Jong Hwa H. Kim was listed as the Officer, Director, and major stockholder of the business.
- Howell, NJ-based Watermelons Inc., doing business as All Sweet Watermelons, for failing to pay a $143,560 award in favor of a California seller. As of the issuance date of the reparation order, Charles F. Pagano was listed as the Officer, Director, and major stockholder of the business.
- Dallas, TX-based Farmers Fruit And Vegetable Company, for failing to pay a $36,745 award in favor of a Texas seller. As of the issuance date of the reparation order, Carlos G. Guillen and Edgar A. Rodriguez were listed as the Officers, Directors, and/or major stockholders of the business.
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, USDA resolved approximately 3,700 PACA claims involving more than $66 million. USDA experts also assisted more than 7,100 callers with issues valued at approximately $100 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
