Release No.: 155-15
WASHINGTON, Nov. 24, 2015 – The U.S. Department of Agriculture (USDA) has imposed sanctions on five 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:
- August Battaglia, doing business as QMP Sales, operating out of Westmont, Ill., for failing to pay a $3,080.00 award in favor of a Florida seller. As of the issuance date of the reparation order, August J. Battaglia was listed as the sole proprietor of the business.
- American Hydroponics Inc., operating out of Hopkinton, Mass., for failing to pay a $10,162 award in favor of a Florida seller. As of the issuance date of the reparation order, Jeffrey H. Barton and Phillip J. Todaro were listed as the officers, directors, and/or major stockholders of the business.
- Hong Phat Produce Inc., operating out of Portland, Ore., for failing to pay a $62,233 award in favor of a California seller. As of the issuance date of the reparation order, Que Mai Dinh was listed as the officer, director, and major stockholder of the business.
- Alfred Huebinger, doing business as Cowboy Sales, operating out of Edinburg, Texas, for failing to pay a $5,534 award in favor of an Idaho seller. As of the issuance date of the reparation order, Alfred Huebinger was listed as the sole proprietor of the business.
- Hector Avila, doing business as Cal Fruit Company, operating out of Chula Vista, Calif., for failing to pay a $43,717 award in favor of a Washington seller. As of the issuance date of the reparation order, Hector A. Brambila was listed as the sole proprietor 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 Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.
In the past three years, USDA resolved approximately 3,700 PACA claims involving more than $66 million. Our experts also assisted more than 7,100 callers with issues valued at approximately $100 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 provider and employer. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users).