The USDA has imposed sanctions on produce businesses for failing to meet contractual obligations to the sellers of produce purchased from and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act.
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, according to a news release.
The USDA said following businesses and individuals are currently restricted from operating in the produce industry:
- Harvest Pro Inc., operating out of Modesto, Calif., for failing to pay a $120,714 award in favor of a California seller. As of the issuance date of the reparation order, Danny Castillon was listed as an officer, director and major stockholder of the business.
- Fruit Point Produce Inc., operating out of Chicago, for failing to pay a $9,100 award in favor of a Texas seller. As of the issuance date of the reparation order, Emmanuel Garcia was listed as the officer, director and major stockholder of the business.
- E & R Produce LLC, operating out of McAllen, Texas, for failing to pay a $7,491 award in favor of a Missouri seller. As of the issuance date of the reparation order, Eleazar Villarreal was listed as the manager of the business.
- Balboa Sun LLC, operating out of Doral, Fla., for failing to pay a $17,827 award in favor of a California seller. As of the issuance date of the reparation order, Angel Rodriguez and Maria M. Rodriguez were listed as managers and members of the business.
- Redlands Best Inc., operating out of Miami, for failing to pay a $9,656 award in favor of a Florida seller. As of the issuance date of the reparation order, Alvaro Perpuly was listed as the officer, director and major stockholder of the business.
- The Cabbage Produce Group Inc., operating out of Plant City, Fla., for failing to pay a $43,304 award in favor of a Florida seller. As of the issuance date of the reparation order, Constantino Garcia was listed as the officer, director and major stockholder of the business.
- Marchella of NY Inc., Oceanside, N.Y., for failure to pay $188,706 to four sellers for produce that was purchased, received, and accepted in interstate and foreign commerce from November 2021 to September 2022. This violates the PACA. Marchella of NY Inc. cannot operate in the produce industry until Jan. 6, 2027, and then only after they apply for and are issued a new PACA license by USDA. The company’s principal, Manashe Yukhananov, may not be employed by or affiliated with any PACA licensee until Jan. 6, 2026, and then only with the posting of a USDA approved surety bond.
For more information, contact Penny Robinson-Landrigan, chief of the Dispute Resolution Branch, at 202-720-2890 or PACAdispute@usda.gov.
