WASHINGTON, July 26, 2011 – The U.S. Department of Agriculture (USDA) has imposed sanctions on four 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:
- International Juice Concentrates Inc., operating out of Long Beach, Calif., for failing to pay a $19,254.00 award in favor of a California seller. As of the issuance date of the reparation order, Carlos Ortiz was listed as the sole officer, director, and stockholder of the business.
- Newport International Services LLC, also doing business as Oceanfront Produce, operating out of Newport Beach, Calif., for failing to pay a $4,763.50 award in favor of a California seller. As of the issuance date of the reparation order, Nikiema Sa De CV, Ignacio Ruiz Love, and Ignacio Ruiz Rosas were listed as the members of the business.
- Delta Fresh Fruit Inc., operating out of Vernon, Calif., and Las Vegas, Nev., for failing to pay a $95,212.50 award in favor of a California seller. As of the issuance date of the reparation order, Edgar Barajas, Julio C. Nievas, and Julisa L. Nievas-Barajas were listed as the officers, directors, and major stockholders of the business.
- Lake Gregory Foodservice LLC, operating out of King City, Calif., for failing to pay a $2,936.75 award in favor of a California seller. As of the issuance date of the reparation order, Michael Le Barre was listed as the sole member of the business.
PACA provides for an administrative forum to handle disputes over 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. The USDA is required to suspend the license of a 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, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA-approval.
The Agricultural Marketing Service (AMS), PACA Branch, regulates fair trading practices of produce businesses operating subject to the PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to the PACA are conducted by the AMS, an agency within the USDA.
In fiscal year 2010, USDA resolved approximately 2,000 claims filed under the PACA involving $30 million. This is just one more way the USDA continues to support the fruit and vegetable industry.
For more information, contact John Koller, Director, Dispute Resolution Section at (202) 720-2890, by fax at (202) 690-2815, or by email at disputeresolutionsection@ams.usda.gov regarding this matter.
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