USDA files PACA actions against five Liborio Markets companies

05/10/2013 02:15:00 PM
Tara Schupner Congdon

In a continuation of actions against various companies bearing the Liborio Markets name, the U.S. Department of Agriculture has filed administrative actions under the Perishable Agricultural Commodities Act against five businesses.

The businesses are:

  • Liborio Markets No. 5 Inc., Los Angeles, for allegedly failing to promptly pay 11 sellers a total of $405,729 for produce bought between July 2010 and July 2012.
  • Liborio Markets No. 7, Colorado Springs, Colo., allegedly did not pay 15 sellers a total of $165,693 for produce bought between February 2011 and December 2011.
  • Liborio Markets No. 8, Pasadena, Calif., also allegedly did not pay 14 sellers a total of $582,226 for produce bought between September 2010 and January 2012.
  • Liborio Markets No. 9 Inc., Colorado Springs, Colo., allegedly failed pay 14 sellers a total of $329,395 for produce bought between October 2010 and January 2012.
  • Liborio Markets No. 10 Inc., Colorado Springs, Colo., allegedly failed to pay 13 sellers in the total amount of $425,599 for produce bought between October 2009 and December 2011.

The companies will have the opportunity to request a hearing, and if they are found responsible, they face the loss of their PACA licenses for two years.

Liborio Markets Inc. has been entangled in a multimillion-dollar bankruptcy case since last year, when a judge ordered the company into a Chapter 7 bankruptcy liquidation in July 2012 even as the USDA lifted its PACA reparation order against the company.

However, the USDA announced May 8 that it had filed an administrative action against Liborio Markets Inc.

In the earlier PACA case, the responsibly connected principals listed were John Alejo, Enrique Alejo, Randy Alejo and Enrique Alejo.

In the bankruptcy case, John Alejo is listed as president and general counsel for Liborio Markets Inc., Alejo Grocers Inc. and Liborio Market No. 5. There are several Liborio markets in California, Nevada and Colorado and other corporate entities that carry the Liborio name, but in court filings, the Alejo family contends those and other various business entities with assets and are not related.



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dhinds    
Guadalajara  |  May, 26, 2013 at 12:48 PM

This is why RedBook (or a comparable service) is indispensable. You HAVE to know the trading practices and economic solvency of whoever you ship to if you want to get paid.

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