WASHINGTON, Dec. 10, 2024 – The U.S. Department of Agriculture (USDA) has imposed sanctions on five 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:
- America Berry Farms Inc. BB #:258787, operating out of Fillmore, Calif., for failing to pay a $6,000 award in favor of a Missouri seller. As of the issuance date of the reparation order, Adrian Mendez and Bertha F. Fernandez were listed as the officers, directors and/or major stockholders of the business.
- Tonys Tomatos Inc. BB #:195861, operating out of Forest Park, Ga., for failing to pay a $19,165 award in favor of a Georgia seller. As of the issuance date of the reparation order, Antonio L. Bautista was listed as the officer, director and major stockholder of the business.
- A & P Produce LLC BB #:343326, operating out of Neptune, N.J., for failing to pay a $55,456 award in favor of a Texas seller. As of the issuance date of the reparation order, Elicelsa Draiz and Pedro M. Iniguez Wale were listed as the members of the business.
- Proof Fresh Inc. BB #:386869, operating out of Waldwick, N.J., for failing to pay a $24,570 award in favor of a Texas seller. As of the issuance of the date of the reparation order, Mauricia Vergara was listed as the officer, director and major stockholder of the business.
- Idea Fresh LLC BB #:366181, operating out of Pharr, Texas, for failing to pay a $43,000 award in favor of a Texas seller. As of the issuance of the date of the reparation order, Hugo Gonzalez was listed as the 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.
For more information, contact Penny Robinson-Landrigan, Chief, Dispute Resolution Branch, at (202) 720-2890 or PACAdispute@usda.gov.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry. In the past three years, USDA handled more than 2,660 cases valued at $127.7 million. PACA staff also assisted over 6,360 callers with issues valued at $154.3 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
