WASHINGTON – The U.S. 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 USDA.
The following businesses and individuals are currently restricted from operating in the produce industry:
- Royalhalo LLC, operating out of Wilmington, Del., for failing to pay a $11,707 award in favor of a Florida seller. As of the issuance date of the reparation order, Ricardo Hernandez, Royalhalo Holdings SAPI de CV and Royalhalo Holding B.V. were listed as managers and members of the business.
- Ruby J Farms LLC, operating out of Nogales, Ariz., for failing to pay a $31,438 award in favor of a Texas seller. As of the issuance date of the reparation order, Anthony J. Comella was listed as the member and manager of the business.
- Doug Specialties LLC, operating out of Pompano Beach, Fla., for failing to pay a $4,921 award in favor of a Washington seller. As of the issuance date of the reparation order, Doug Habe was listed as the member and manager of the business.
- Choice Farm Inc., operating out of Patterson, N.J., for failing to pay a $21,895 award in favor of a New York seller. As of the issuance date of the reparation order, Jai Eui Song was listed as the officer, director and major stockholder 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…