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

Wednesday, February 17, 2016 - 3:00pm
Contact Info: 

Release No.: 032-16

WASHINGTON, Feb. 17, 2016 – The U.S. Department of Agriculture (USDA) has imposed sanctions on three produce businesses for failure 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:

  • Access Fresh LLC, operating out of Carmel, Calif., for failing to pay a $41,238 award in favor of an Idaho seller.  As of the issuance date of the reparation order, Cabbage Head LLC, Richard M. Downey, and Daniel J. Lord were listed as members of the business.
  • Cali Prime Produce LLC, operating out of Belmont, Calif., for failing to pay a $5,641 award in favor of a Minnesota seller.  As of the issuance date of the reparation order, Fouad Saeed Abdulkadir was listed as a member of the business.
  • Monarch Fresh Produce LLC, operating out of Pharr, Texas, for failing to pay a $6,574 award in favor of an Illinois seller.  As of the issuance date of the reparation order, Jason N. Stros was listed as a member of the business.

PACA provides an administrative forum to handle disputes involving 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.  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.

The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry.  All oversight of actions related to PACA are conducted by AMS, an agency within USDA.

In the past three years, USDA resolved approximately 3,700 PACA claims involving more than $66 million.  Our experts also assisted more than 7,100 callers with issues valued at approximately $100 million.  These are just two examples of how USDA continues to support the fruit and vegetable industry.

For more information, contact John Koller, Chief, Dispute Resolution Branch at (202) 720-2890, by fax at (202) 690-2815, or by email at regarding this matter.

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