Release No.: 021-17
WASHINGTON, Feb. 1, 2017 – The U.S. Department of Agriculture (USDA) has imposed sanctions on three produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
The following businesses and individuals are currently restricted from operating in the produce industry:
- K & D Produce Inc., operating out of New York, N.Y., for failing to pay a $20,985 award in favor of a New York seller. As of the issuance date of the reparation order, Bing Qia Chen was listed as the officer, director and major stockholder of the business.
- Get Fresh Produce Distributors Inc., operating out of Los Angeles, Calif., for failing to pay a $1,684 award in favor of an Arizona seller. As of the issuance date of the reparation order, Zabdi Reyes was listed as the officer, director and major stockholder of the business.
- E Cortez Corporation, operating out of Nipomo, Calif., for failing to pay an $11,885 award in favor of a California seller. As of the issuance date of the reparation order, Emilio Cortez was listed as the officer, director and major stockholder of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued 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 PACA Division, which is part of USDA’s Agricultural Marketing Service (AMS), regulates fair trading practices of produce businesses that are operating subject to PACA including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry.
In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. Our experts also assisted more than 8,000 callers with issues valued at approximately $140 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
For more information, contact John Koller, Chief, Dispute Resolution Branch at (202) 720-2890, by fax at (202) 690-2815, or by email at PACAdispute@ams.usda.gov regarding this matter.
Get the latest Agricultural Marketing Service news at www.ams.usda.gov/news or follow us on Twitter @USDA_AMS. You can also read about us on the USDA blog.
USDA is an equal opportunity lender, provider and employer.