The U.S. Department of Agriculture (USDA) has imposed sanctions on CFG Produce Inc., Lantana, Texas, for violating the Perishable Agricultural Commodities Act (PACA).
CFG Produce Inc. failed to pay $502,218 to six sellers for produce that was purchased, received, and accepted in interstate and foreign commerce from September 2022 to February 2023. CFG Produce Inc. cannot operate in the produce industry until Nov. 13, 2026, and then only after they apply for and are issued a new PACA license by USDA.
The company's principal, Shawn Jackson, may not be employed by or affiliated with any PACA licensee until Nov. 13, 2025, and then only with the posting of a USDA-approved surety bond.
Additionally, in a complaint filed on June 27, 2023, the USDA alleged that VIP Marketing Inc., Los Angeles, Calif., failed to make full payment promptly in the amount of $408,983 to three sellers for multiple lots of produce in violation of PACA.
After the complaint was filed, USDA and VIP Marketing Inc. entered into a Consent Decision and Order wherein VIP Marketing Inc. agreed to pay the unpaid produce sellers listed in Appendix A to the Complaint and to pay a civil penalty in the amount of $40,000. As a result of VIP Marketing Inc. satisfying the terms of the consent decision and order, the finding that it had committed repeated and flagrant PACA violations was permanently abated without further process and the case has been closed.
USDA also imposed sanctions on several produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under PACA.
These include:
- Mendoza Fresh Produce LLC (Houston, Texas) for failing to pay $11,440 in favor of a Texas seller. Victor Mendoza was the member/manager.
- A Z Puchi III Enterprises Inc. (Nogales, Arizona) for failing to pay $11,580 in favor of a California seller. Alberto Puchi, III was sole officer/director/major stockholder.
- Rossman Fruit & Veg. Dist. Inc. (Brooklyn, N.Y.) for failing to pay $102,729 in favor of a New York seller. Nitzan Rozman was sole officer/director/major stockholder.
- G & S Produce Inc. (Los Angeles, California) for failing to pay $10,676 in favor of a California seller. Guadalupe Serafin was sole officer/director/major stockholder.
- Too Fresh USA LLC (Miami, Florida) for failing to pay $14,173 in favor of a Texas seller. Maria Greaney was manager.
- Lakeside Produce Inc. (Taylor, Michigan) for failing to pay $667,833 in favor of a Michigan seller. Chris Cervini was the member/manager. Cervini has challenged his responsibly connected status.
Click here for an overview of companies that previously violated PACA.
For more information:
Corey Elliott
USDA
Tel: +1 (202) 720-6873
[email protected].
Penny Robinson-Landrigan
USDA
Tel.: +1 (202) 720-2890
[email protected]
www.ams.usda.gov