Release No.: 045-17
WASHINGTON, March 6, 2017 – 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:
- Jonathan Mendez, doing business as 3 Mendez Produce, operating out of South Gate, Calif., for failing to pay a $2,580 award in favor of a California seller. As of the issuance date of the reparation order, Jonathan Mendez was listed as the sole proprietor of the business.
- JLP Farms Wholesale Retail Produce Transportation LLC, operating out of Tifton, Ga., for failing to pay a $165,302 award in favor of a New Jersey seller. As of the issuance date of the reparation order, John L. Pettiford, Diane M. Royster and Anthony D. White were listed as the members of the business.
- Global Connection VA LLC, operating out of Dallas, Texas, for failing to pay a $101,533 award in favor of a Washington seller. As of the issuance date of the reparation order, Jose Luis Aguero and Alberto Vazquez were listed as the members of the business.
- De La Cruz Produce, operating out of Gillette, Wyo., for failing to pay a $2,419 award in favor of a California seller. As of the issuance date of the reparation order, Francisco De La Cruz 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.
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