WASHINGTON, D.C. - The U.S. Department of Agriculture (USDA) has imposed sanctions on three California produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a press release from the USDA, the following businesses and individuals are currently restricted from operating in the produce industry:
- Santa Maria, CA-based company, The Lexy Group, for failing to pay a $42,732 award in favor of a California seller. As of the issuance date of the reparation order, Juan M. Cardenas was listed as the Officer, Director, and Major Stockholder of the business.
- Los Angeles, CA-based company, RFT Farm Sales Inc., for failing to pay a $43,789 award in favor of a California seller. As of the issuance date of the reparation order, Robert F. Thompson and Clarissa M. Thompson were listed as the officers, directors, and/or major stockholders of the business. Another principal of the business at the time of the order was Stewart Thompson. He has challenged his responsibly connected status.
- San Diego, CA-based company, Eyob Tewolde, for failing to pay an $11,145 award in favor of a California seller. As of the issuance date of the reparation order, Eyob Tewolde was listed as the sole proprietor 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.
In the past three years, the USDA has resolved approximately 3,700 PACA claims involving more than $66 million. Its experts have 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.
