WASHINGTON, Nov. 1, 2010 – The U.S. Department of Agriculture (USDA) has imposed sanctions on five produce businesses for failing 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:
- Nirvana Produce Distributors Inc., operating out of Chula Vista, Calif., for failing to pay a $6,668.50 award in favor of a California seller. The responsibly connected officers, directors, and major stockholders are John P. Mitman and Antonio Virgilio.
- Z & S Fresh Inc., operating out of Fresno, Calif., for failing to pay a $40,109.07 award in favor of a California seller. The responsibly connected officer, director, and stockholder is Martin J. Zaninovich.
- Waffa Spices Inc., operating out of Los Angeles, Calif., for failing to pay a $6,352 award in favor of an Arizona seller. The responsibly connected officers, directors, and major stockholders are Ammar Jarbouh and Yesika Jarbouh.
- International Onions Inc., operating out of Los Angeles, Calif., for failing to pay a $21,049.28 award in favor of a California seller. The sole responsibly connected officer, director, and stockholder is David Garcia.
- Salyer American Fresh Foods Inc., operating out of Monterey, Calif., for failing to pay a $37,289.55 award in favor of a California seller. The responsibly connected officers, directors, and major stockholders are Stefanie Salyer and Scott Salyer.
PACA provides an administrative forum to handle disputes over 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.
The 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, 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 Branch, regulates fair trading practices of produce companies operating subject to the PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to the PACA are conducted by the AMS, an agency within the USDA.
In fiscal year 2010 USDA resolved approximately 2,000 claims filed under the PACA involving $30 million. This is just one more way the USDA continues to support the fruit and vegetable industry.
For more information, contact John Koller, Director, Dispute Resolution Section at (202) 720-2890, by fax at (202) 690-2815, or by email at disputeresolutionsection@ams.usda.gov regarding this matter.
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