WASHINGTON, March 16, 2026 – 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 businesses’ principal operators 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:
- Produce Cem Ortega, Inc., operating out of Commerce, Calif., for failing to pay an $11,804 award in favor of a California seller. As of the issuance date of the reparation order, Miguel S. Ortega was listed as the officer, director and major stockholder of the business.
- Promise Land Produce LLC, operating out of Jacksonville, Fla., for failing to pay a $3,723 award in favor of a Florida seller. As of the issuance date of the reparation order, John L. Lundy was listed as the manager/member of the business.
- Delcer Fresh Produce, Inc., operating out of Las Vegas, Nev., for failing to pay a $46,829 award in favor of a Nevada seller. As of the issuance date of the reparation order, Jorge Delgado Barrera was listed as the officer, director and major stockholder of the business.
- Hong Kong Distribution Corporation, operating out of Maspeth, N.Y., for failing to pay a $57,874 award in favor of a Texas seller. As of the issuance date of the reparation order, Jeffrey Wu and Ioc Heng Ip were listed as the officers, directors and/or major stockholders of the business.
- AMS H International Global Services, Inc., operating out of Pharr, Texas, for failing to pay a $124,394 award in favor of a Texas seller. As of the issuance date of the reparation order, Heriberto Lopez 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.
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.
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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.
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