WASHINGTON, DC - The United States Department of Agriculture (USDA) has 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). 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 the USDA.
Direct from the USDA Agricultural Marketing Service:
The following businesses and individuals are currently restricted from operating in the produce industry:
- Golden Hills Foods Corp., operating out of Bogalusa, Louisiana, for failing to pay a $22,584 award in favor of an Arizona seller. As of the issuance date of the reparation order, Veronica Perez was listed as the sole officer, director, and stockholder of the business
- Assured Edge Solutions, operating out of Geneva, New York, for failing to pay a $22,904 award in favor of a Maryland seller. As of the issuance date of the reparation order, Daniel Rao was listed as the sole member of the business
- Jack Humphreys doing business as Zia Onion Sales, operating out of Desoto, Texas, for failing to pay a $8,457 award in favor of a Texas seller. As of the issuance date of the reparation order, Jack Humphreys was listed as the sole proprietor of the business
- Fresh Central Trading, operating out of Pharr, Texas, for failing to pay a $4,268 award in favor of a Pennsylvania seller. As of the issuance date of the reparation order, Edgar Garcia Lanuza 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.
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