Following yesterday's article with PACA updates, the USDA has imposed sanctions on three more produce businesses. They've been sanctioned 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 from engaging in PACA-licensed business or other activities without approval from USDA.
- My Ark Farm Corp. (Pat's Farms) of Merrick, N.Y., for failing to pay a $12,489 award to a New York seller. As of the issuance date of the reparation order, Awilda Diaz was listed as the officer, director, and major stockholder of the business.
- Edy's Produce of Seven Springs, N.C., for failing to pay an $8,894 award to a Texas seller. As of the issuance date of the reparation order, Edy Velasquez was listed as the sole proprietor of the business.
- Jaspo Inc. of Bellevue, Wash., for failing to pay a $135,934 award to a California seller. As of the issuance date of the reparation order, Koji Suzuki was listed as the officer, director, and major stockholder of the business.
USDA has also imposed sanctions on Northeast Tomato Distributors Inc., Hanover Township, Pa., for violating PACA. These sanctions include barring the business and the principal operators of the business from engaging in PACA-licensed business or other activities without approval from USDA.
Northeast Tomato Distributors Inc. failed to pay $219,173 to five sellers for produce that was purchased, received, and accepted in interstate and foreign commerce from August 2022 to November 2022. This violates the PACA. Northeast Tomato Distributors Inc. cannot operate in the produce industry until July 9, 2026, and then only after they apply for and are issued a new PACA license by USDA.
The company's principals, Linda Good and Patrick Good may not be employed by or affiliated with any PACA licensee until July 9, 2025, and then only with the posting of a USDA-approved surety bond.
Finally, USDA has also filed an administrative complaint against Real Value Sales Inc. for alleged violations of PACA. The company, operating from Arizona, allegedly failed to make payment promptly to 10 produce sellers $162,275 from November 2022 through July 2023.
Real Value Sales Inc. will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry as a licensee for three years, or two years with the posting of a USDA-approved surety bond. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for two years, or one year with the posting of a USDA-approved surety bond.
Click here for an overview of companies that previously violated PACA.
For more information:
Penny Robinson-Landrigan
USDA
Tel.: +1 (202) 720-2890
[email protected]
www.ams.usda.gov
Corey Elliott
USDA
Tel: +1 (202) 720-6873
[email protected]
www.ams.usda.gov