The U.S. Department of Agriculture has cited Progreso Produce Ltd. 1 LP, Boerne, Texas, for failure to pay for produce, according to a USDA news release.
The company failed to pay $3,904,232 to eight sellers for 760 lots of produce covered by Perishable Agricultural Commodities Act regulations. The Packer reported that Progreso Produce filed for Chapter 7 bankruptcy liquidation last fall, with debts up to $10 million. USDA and Progreso Produce entered into a consent decision barring the company from operating in the produce industry until June 25, 2016, when it may reapply for a PACA license.
The company’s principal, Curtis Deberry, who has been indicted for nine counts, including wire fraud and money laundering, may not be employed with any PACA licensee until June 25, 2015, and then only with the posting of a USDA-approved surety bond.
The USDA has also imposed sanctions on two produce businesses for failure to pay PACA reparation awards.
The following businesses and individuals are currently restricted from operating in the produce industry:
- Wing On Food Inc., West Valley, Utah, for failing to pay a $14,796 award in favor of a California seller. Chun Tseung was listed as the officer, director, and major stockholder of the business.
- Florida Fresh Tropicals LLC, Miami, for failing to pay a $183,726 award in favor of a Florida seller. Jesse Fernandez was listed as a member of the business.