The USDA has imposed sanctions on three produce businesses for failing to meet contractual obligations to the sellers of produce.
The USDA said in a news release that the businesses purchased and failed 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 the release.
The release said the following businesses and individuals are currently restricted from operating in the produce industry:
- Xalpa Fresh Inc., operating out of Los Angeles, 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, 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, N.Y., 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.
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, according to the release.
For more information, contact Penny Robinson-Landrigan, chief at the Dispute Resolution Branch, at 202-720-2890 or [email protected].