USDA Restricts PACA Violators in California and Texas from Operating in the Produce Industry

WASHINGTON, July 31, 2025 – 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 for 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 USDA approval.

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

• La Michoacana Fruit Wholesale Inc., operating out of Los Angeles, Calif., for failing to pay a $71,270 award in favor of a Minnesota seller. As of the issuance date of the reparation order, Jacqueline Garduno was listed as the sole officer, director, and stockholder of the business.

• Ocean Blue Produce Inc., operating out of Los Angeles, Calif., for failing to pay a $19,656 award in favor of a Texas seller. As of the issuance date of the reparation order, Karla Canales De Sanchez was listed as the sole officer, director, and stockholder of the business.

• WKS Ag Consultants Inc., operating out of Dinuba, Calif., for failing to pay a $288,609 award in favor of a California seller. As of the issuance date of the reparation order, William Slattery and Jeanette Slattery were listed as the officers, directors, and major shareholders of the business.

• NM International Tradez Inc., operating out of Sugar Land, Texas, for failing to pay a $12,100 award in favor of a Texas seller. As of the issuance date of the reparation order, Nasir Merchant was listed as the sole officer, director, and stockholder of the business.

• Idea Fresh L.L.C., operating out of Pharr, Texas, for failing to pay a $28,476 award in favor of a Texas seller. As of the issuance date of the reparation order, Hugo Gonzalez was listed as the sole officer, director, and stockholder of the business.

PACA provides an administrative forum to handle disputes involving produce transactions, which 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.

Get the latest Agricultural Marketing Service news at www.ams.usda.gov/news.

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