The U.S. Department of Agriculture (USDA) has imposed sanctions on three 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:
- Xalpa Fresh Inc., operating out of Los Angeles, California, for failing to pay a $14,751 award in favor of a California seller. As of the issuance date of the reparation order, Luis Ravelo was listed as the officer, director, and stockholder of the business.
- Lucero Produce LLC, operating out of Denver, Colorado, for failing to pay a $27,792 award in favor of a Texas seller. As of the issuance date of the reparation order, Kristin Waller and Jose Silvestre were listed as the managers and members of the business.
- US Fresh Corp., operating out of Bronx, New York, for failing to pay a $51,801 award in favor of a California seller. As of the issuance date of the reparation order, Gonzalo Jaramillo was listed as the officer, director, and stockholder of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders, may not be employed by or affiliated with any PACA licensee without USDA approval.
The USDA has also filed an administrative complaint against two companies: GoGreen Farms Inc. (GoGreen Farms) and VIP Marketing Inc., for alleged violations of PACA.
GoGreen Farms, operating from Virginia, allegedly failed to make payment promptly to three produce sellers in the amount of $313,036 from September 2021 through April 2022. VIP Marketing, operating from California, allegedly failed to make payment promptly to three produce sellers in the amount of $408,983 from May 2021 through October 2021.
Both GoGreen Farms and VIP Marketing will have an opportunity to request a hearing.
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