The USDA recently imposed sanctions on three produce businesses for failing to meet contractual obligations to the sellers of the produce they purchased.
Those obligations include failing to pay reparation awards issued under the Perishable Agricultural Commodities Act, according to a news release. The 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, according to the release:
- Cadence Gourmet LLC, doing business as Cadence Kitchen, operating out of Corona, Calif., for failing to pay a $56,609 award in favor of a California seller. As of the issuance date of the reparation order, Brian & Tina Wynn Community Property Trust, Brian Wynn Family Trust, Alexander Klein and Brian J. Wynn were listed as managers and members of the business.
- San Isidro Fresh Produce Inc., operating out of Chicago, for failing to pay a $29,680 award in favor of a Texas seller. As of the issuance date of the reparation order, Emmanuel Garcia was listed as the officer, director and major stockholder of the business.
- First Quality Produce LLC, operating out of McAllen, Texas, for failing to pay a $7,200 award in favor of a Texas seller. As of the issuance date of the reparation order, Oscar Manuel Corral Vega and Elizabeth Vega Trujillo were listed as managers and members of the business.
USDA says it 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, the release said.
For more information, contact Penny Robinson-Landrigan, chief of the Dispute Resolution Branch, at 202-720-2890 or PACAdispute@usda.gov.