USDA Restricts Perishable Agricultural Commodities Act violators in several states

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

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.

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

  • Arizona Marketing Produce Distributors Inc., operating out of Phoenix, Ariz., for failing to pay a $12,100 award in favor of an Arizona seller. As of the issuance date of the reparation order, Lorin Hobbs was listed as the officer, director and major stockholder of the business;
  • Benny’s Farm Fresh Dist. Co., operating out of Wilmette, Ill., for failing to pay a $12,408 award in favor of a Florida seller. As of the issuance date of the reparation order, Ronald Pomerantz was listed as the officer, director and major stockholder of the business;
  • DR Produce LLC, operating out of Patterson, N.J., for failing to pay an $80,647 award in favor of a Florida seller. As of the issuance date of the reparation order, Pavlos Vardinoyannis and Lovely Farms OPCO LLC were listed as members/managers and stockholders of the business;
  • PICA Marketing Inc., operating out of Edmond, Okla., for failing to pay an $11,898 award in favor of a Texas seller. As of the issuance date of the reparation order, Joseph Pica was listed as the officer, director and 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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