USDA restricts PACA violators in Michigan, Florida

Two produce businesses have been sanctioned for failing to meet contractual obligations to the sellers and failure to pay reparation awards.

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 USDA says it has imposed sanctions on two 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 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 following businesses and individuals are currently restricted from operating in the produce industry:

  • Too Fresh USA LLC, operating out of Miami, for failing to pay a $14,173 award in favor of a Texas seller. The USDA listed Maria Greaney as the manager of the business as of the issuance of the date of the reparation order.
  • Lakeside Produce Inc., operating out of Taylor, Mich., for failing to pay a $667,833 award in favor of a Michigan seller. Chris Cervini was listed as the member and manager of the business as of the issuance date of the reparation order.

The USDA said Cervini had challenged his responsibly connected status but was found to be responsibly connected to Lakeside Produce. As a result, Cervini may not be employed or affiliated with any PACA licensee without USDA approval and then only with the posting of a USDA-approved surety bond, the release said.

Related: USDA files action against Michigan company for alleged PACA violations

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