WASHINGTON, Feb. 22, 2023 – The U.S. Department of Agriculture (USDA) has imposed sanctions on four 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 principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from USDA.
The following businesses and individuals are currently restricted from operating in the produce industry:
Mos Can Everything Inc., operating out of Los Angeles, , for failing to pay a $ Calif. 23,580 award in favor of a Californiaseller. As of the issuance date of the reparation order, Jaime Ortegawas listed as the of the business. sole officer, director and stockholder Produce For Less LLC, operating out of Dearborn, , for failing to pay a $ Mich. 21,386award in favor of a Michiganseller. As of the issuance date of the reparation order, Hassan Mrouewas listed as the of the business. sole member
- PH Quality Produce LLC, operating out of Pharr, Texas, for failing to pay a $265,888 award in favor of a Florida seller. As of the issuance date of the reparation order, Wade Paden was listed as the sole member of the business.
Quinteros Fruit Company LLC, operating out of McAllen, Texas, for failing to pay a $ 6,955award in favor of a Texasseller. As of the issuance date of the reparation order, Serafin Quintero Posadas, and Edgar Quintero Garcia, were listed as the of the business. member/managers
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.
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. In the past three years, USDA resolved over 3,000 PACA claims involving approximately $147 million. PACA staff also assisted more than 5,900 callers with issues valued at approximately $163 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.
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