The U.S. Department of Agriculture has imposed sanctions on three produce businesses for failing to meet contractual obligations to the sellers they purchased produce from and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act. These sanctions include suspending the businesses’ PACA licenses and barring the principal operators from engaging in PACA-licensed business or other activities without USDA approval.
The following businesses and individuals are currently restricted from operating in the produce industry:
- Southern Kraze Farms LLC, operating out of Timberlake, NC, for failing to pay a $128,089 award in favor of an Alabama seller. As of the issuance date of the reparation order, Orin Long was listed as the member of the business.
- Raul Distributor Inc., operating out of Bronx, NY, for failing to pay a $48,234 award in favor of a Florida seller. As of the issuance date of the reparation order, Raul Martinez was listed as the officer, director and major stockholder of the business.
- Triple C Produce & Logistic LLC, operating out of Humble, TX, failing to pay a $41,257 award in favor of a Texas seller. As of the issuance date of the reparation order, Eliezer Manzo, Carlos Escobar and Gana Sales LLC were listed as 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.
USDA restricts PACA violators in five states
The following businesses and individuals are currently restricted from operating in the produce industry:
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