USDA restricts PACA violators in New Jersey and Texas

The USDA 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, the USDA said:

• PHP Group LLC, operating out of Saddle River, N.J., for failing to pay a $37,841 award in favor of a Texas seller. As of the issuance date of the reparation order, Pedro H. Perez was listed as a member of the business.
• LR Imports Inc., operating out of Houston, Texas, for failing to pay a $34,560 award in favor of a California seller. As of the issuance date of the reparation order, Martin Luna and Luis E. Ramirez were listed as the officers, directors and/or major stockholders of the business.

By issuing these penalties, USDA said it continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.

For more information, contact PACA, Dispute Resolution Branch, at (202) 720-2890 or PACAdispute@usda.gov.