WASHINGTON, D.C. - The USDA has reportedly imposed sanctions on both a District of Columbia and a California-based company for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a press release, the following businesses and individuals are currently restricted from operating in the produce industry:
- Elite Floral & Produce, operating out of Washington, DC, for failing to pay a $21,225 award in favor of a California seller. As of the issuance date of the reparation order, Eyal Balva was listed as a member of the business.
- 3 Brothers Produce LLC, operating out of Los Angeles, Calif., for failing to pay a $29,629 award in favor of a California seller. As of the issuance date of the reparation order, Maria E. Sanchez was listed as a member of the business.
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, USDA resolved approximately 4,250 PACA claims involving more than $77 million. USDA experts have also assisted more than 7,000 callers with issues valued at approximately $110 million. Individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without the approval of the USDA. The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.
