Agricultural Marketing Service
About AMS Newsroom Opportunity Online Forms Help Contact Us
 
 
Search AMS
   Browse by Subject
 
You are here: Home / USDA Restricts Two PACA Violators in Arizona and Texas from Operating in the
 
Newsroom
 
News Release

Printable version

USDA Restricts Two PACA Violators in Arizona and Texas from Operating in the

Release No.: 114-13
Contact:
Nadine Wilkins (202) 720-8998


WASHINGTON, July 23, 2013 The U.S. Department of Agriculture (USDA) has imposed sanctions on two produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).


The following businesses and individuals are currently restricted from operating in the produce industry:


--Castro Produce LLC, operating out of Nogales, Ariz., for failing to pay a $1,038,542 award in favor of a Texas seller. As of the issuance date of the reparation order, Jesus O. Castro Villaverde, Olivia T. Castro Villaverde and Xiomara Castro Villaverde were listed as members of the business.


--Del Rancho Produce Inc., operating out of McAllen, Texas, for failing to pay a $10,400 award in favor of a Texas seller. As of the issuance date of the reparation order, Francisco A. Ramirez and Juan Carlos Ruiz were listed as the officers, directors, and/or major stockholders of the business.


PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued 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 of a 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.


The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.


In the past three years, USDA resolved approximately 5,000 claims filed under PACA involving almost $96 million. This is just one more way USDA continues to support the fruit and vegetable industry.


For more information, contact John Koller, Chief, Dispute Resolution Branch at (202) 720-2890, by fax at (202) 690-2815, or by email at disputeresolutionsection@ams.usda.gov regarding this matter.


Get the latest Agricultural Marketing Service news at www.ams.usda.gov/news or follow us on Twitter @USDA_AMS. You can also read about us on the USDA blog.


USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users).


 
Resources
 
  Latest Releases  
 
  Public Affairs Staff  
 
  Subscribe to RSS Feed  
 
 
  Last Modified Date: 07/23/2013