Release No.: 035-18
WASHINGTON, March 23, 2018 – 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:
- Alpha Omega Produce Inc., operating out of Wellington, Fla., for failing to pay a $28,177 award in favor of a Tennessee seller. As of the issuance date of the reparation order, Marco A. Spataro was listed as the officer, director and major stockholder of the business.
- Jose D. Pena Tamez, doing business as Pena Brothers Produce Distribution, operating out of Dandridge, Tenn., for failing to pay a $10,577 award in favor of a Florida seller. As of the issuance date of the reparation order, Jose D. Pena Tamez was listed as the sole proprietor of the business.
- Veracity Produce LLC, operating out of San Antonio, Texas, for failing to pay a $23,816 award in favor of a Colorado seller. As of the issuance date of the reparation order, Andrew J. Blakeman and Ramiro Ruiz, Jr., were listed as members of the business.
- Border Produce Services LLC, operating out of McAllen, Texas, for failing to pay a $2,460 award in favor of a California seller. As of the issuance date of the reparation order, Arturo J. Garcia was listed as a member of the business.
- Azteca International Produce LLC, operating out of McAllen, Texas, for failing to pay an $83,396 award in favor of a Texas seller. As of the issuance date of the reparation order, Luc Delorme was listed as a member of the business. Another principal of the business at the time of the order was Hilda Rivera. She has challenged her responsibly connected status.
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 in the Fair Trade Practices Program in the Agricultural Marketing Service, 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. PACA staff 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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