USDA Reports PACA Actions Against Ten Produce Businesses

AMS No. 050-10

Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.govBilly Cox (202)720-8998Billy.cox@ams.usda.gov

WASHINGTON, March 18, 2010 – The U.S. Department of Agriculture has cited 10 produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).

These businesses have been barred from operating in the produce industry until their awards are paid. The businesses were served complaints by USDA and were given the opportunity to respond. USDA subsequently ordered payment of the amounts mentioned below.

The businesses are:

--Phoenix Fresh Produce LLC, operating in Phoenix, Ariz., for failing to pay an $8,000 award in favor of a Minnesota seller. The sole member is Carlos H. Arzate Reyes.

--Lopez Produce Inc., operating in Oakland, Calif., for failing to pay a $24,877 award in favor of an Arizona seller. The officers, directors, and major stockholders are Javier G. Lopez, Rosa Lopez, and Lorena Solis.

--Vine Ripe Specialties Inc., operating in Fort Myers, Fla., for failing to pay an $8,326 award in favor of a Florida seller. The sole officer, director, and stockholder is Donald S. Griffin.

--LBJ Produce Inc., operating in Miami, Fla., for failing to pay a $3,284 award in favor of an Ohio seller. The officers, directors, and major stockholders are Larry S. Okun and Jeffrey A. Okun.

--La Dona Produce Corp., operating in Plant City, Fla., for failing to pay a $5,570 award in favor of a Florida seller. The sole officer, director, and stockholder is Pedro M. Pena.

--Atlantic Coast Produce Inc., operating in Jessup, Md., for failing to pay a $22,700 award in favor of an Idaho seller. The officers, directors, and major stockholders are Michael J. Lambright and August W. Lambright.

--Chelsea Wholesale Distributors, operating in Chelsea, Mass., for failing to pay a $19,217 award in favor of a New Jersey seller. The officers, directors, and major stockholders are Deyson O. Guerrero and Luis E. Guerrero.

--Dye Farms & Trucking LLC, operating in Holcomb, Mo., for failing to pay a $4,860 award in favor of a Missouri seller. The officer, director, and stockholder is Shannon Dye.

--Anami Foods LLC, doing business as Jubilee Foods, operating in East Aurora, N.Y., for failing to pay a $30,047 award in favor of a New York seller. The sole member is Daniel P. Canale.

--Pittsburgh Produce LLC, operating in McMurray, Pa., for failing to pay a $13,115 award in favor of a New Jersey seller. The sole member is Moses Yarsike.

PACA provides for damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. Interstate produce traders operating as commission merchants, dealers or brokers, and conducting a sufficient volume of business must be USDA-licensed.

USDA is required to suspend the license of a business that fails to pay PACA reparations awarded against it. Individuals, partners, members, officers, directors, or major stockholders associated with these businesses may not be employed by or affiliated with any PACA licensee without USDA-approval.

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