WASHINGTON, Feb. 8, 2012 – The U.S. Department of Agriculture (USDA) imposed sanctions on four produce businesses for failure to pay reparation awards under the Perishable Agricultural Commodities Act (PACA).
The following businesses and individuals are currently restricted from operating in the produce industry:
- Champ Produce Inc., operating out of Watsonville, Calif., for failing to pay a $34,996 award in favor of an Oregon seller. As of the issuance date of the reparation order, Zachary Chavez Jr. was listed as the officer, director, and stockholder of the business.
- Alliance Distribution Center LLC, operating out of Los Angeles, Calif., for failing to pay a $2,718 award in favor of a California seller. As of the issuance date of the reparation order, Ricardo B. Bombella was listed as the member of the business.
- Lombardo Imports Inc., operating out of Las Vegas, Nev., for failing to pay a $12,132 award in favor of a California seller. As of the issuance date of the reparation order, Thomas J. Lombardo Jr. was listed as the officer, director, and major stockholder of the business.
- Quality Experience Produce Inc., operating out of Nogales, Ariz., for failing to pay a $31,672.08 award in favor of an Arizona seller. As of the issuance date of the reparation order, Martin Mendoza and Martha P. Mendoza were listed as the officers, directors, and major stockholders 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 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 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 2011, USDA resolved approximately 2,000 claims filed under the PACA involving $31 million. This is just one more way the 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 disputeresolutionsection@ams.usda.gov regarding this matter.
Get the latest Agricultural Marketing Service news at http://www.ams.usda.gov/news or follow us on Twitter @USDA_AMS.
USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Ave., S.W., Washington, D.C. 20250-9410 or call (800) 795-3272 (voice), or (202) 720-6382 (TDD).