USDA restricts PACA violators in California, Maryland, New York and Texas from operating in the produce industry

The USDA has imposed sanctions on five produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under PACA.

PACA
The USDA has filed an administrative complaint against Smile Onion 7 Inc. for allegedly failing to make payment promptly to 15 produce sellers.
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The U.S. Department of Agriculture has imposed sanctions on five produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act.

These sanctions, according to a news release, 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.

The agency said the following businesses and individuals are currently restricted from operating in the produce industry:

  • Urban Fresh Produce Inc., operating out of San Diego, Calif., for failing to pay a $15,460 award in favor of a California seller. As of the issuance date of the reparation order, Mirna Gutierrez was listed as the officer, director and/or major stockholder of the business;
  • Sunrise Produce Inc., operating out of Jessup, Md., for failing to pay a $13,414 award in favor of a Pennsylvania seller. As of the issuance date of the reparation order, Huinil Emergildo, Ramirez Aurelio, Araceli Ortiz and Liliana Cortez were listed as the officers, directors and/or major stockholders of the business;
  • PFI Express Inc., operating out of Valley Stream, N.Y., for failing to pay a $25,014 award in favor of a Hawaii seller. As of the issuance date of the reparation order, Romilda Silva was listed as the officer, director and/or major stockholder of the business;
  • Temple Turmeric Inc., doing business as Temple Beverages, operating out of Brooklyn, N.Y., for failing to pay a $21,416 award in favor of a California seller. As of the issuance date of the reparation order, Daniel Sullivan was listed as the officer, director and major stockholder of the business; and
  • Eli Gonzalez Distributors Inc., operating out of Pharr, Texas, for failing to pay a $4,800 award in favor of a Texas seller. As of the issuance date of the reparation order, Elida Garcia Villegas was listed as the officer, director and/or major stockholder of the business.

For more information, contact John Koller, Chief, Dispute Resolution Branch, at (202) 720-2890, by fax at (202) 690-2815, or PACAdispute@usda.gov.

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