(July 7, 10:27 a.m.) WASHINGTON D.C. — The U.S. Department of Agriculture has cited six produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
These businesses have been barred from operating in the produce industry until their awards are paid. The businesses were served com-plaints by USDA and were given the opportunity to respond. USDA subsequently ordered payment of the amounts mentioned below.
The businesses are:
- Rosales Hernandez Produce, operating in Phoenix, Ariz., for failing to pay a $23,946 award in favor of a California seller. The sole pro-prietor is Valente Rosales.
- Golden Dragon Enterprises Inc., operating in Burton, Mich., for failing to pay a $4,443 award in favor of an Illinois seller. The officers, directors, and major stockholders are Michelle G. Ly and Quang D. Ly.
- Fresh Kut Produce LLC, operating in Marion, N.Y., for failing to pay a $10,355 award in favor of a New York seller. The sole member is Sherwood L. Delyser Jr.
- Alfa Quality Produce Inc., operating in Brooklyn, N.Y., for failing to pay a $29,338 award in favor of a Pennsylvania seller. The officer, director, and major stockholder is Mouiz Khalifeh.
- Mexican Specialties Produce, operating in Houston, Texas, for failing to pay a $2,904 award in favor of a Texas seller. The sole proprie-tor is Juan A. Galaviz.
- Wind River Mushrooms LLC, operating in Shoshoni, Wyo., for failing to pay a $33,195 award in favor of a Florida seller. The members are James E. Clair and Douglas C. Tanner.
PACA provides for damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. Interstate produce traders operating as commission merchants, dealers or brokers, and conducting a sufficient volume of business must be USDA-licensed.
USDA is required to suspend the license of a business that fails to pay PACA reparations awarded against it. Individuals, partners, mem-bers, officers, directors, or major stockholders associated with these businesses may not be employed by or affiliated with any PACA licensee without USDA-approval.