Release No.: 039-15WASHINGTON, April 29, 2015 – 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:
- La Siembra Produce Inc., operating out of Chicago, Ill., for failing to pay a $5,920 award in favor of a Texas seller. As of the issuance date of the reparation order, Eduardo Ornelas was listed as the officer, director, and major stockholder of the business.
- Sentinela Fresh Produce Inc., operating out of Chula Vista, Calif., for failing to pay an $8,364 award in favor of an Arizona seller. As of the issuance date of the reparation order, Javier Medina was listed as an officer, director, and major stockholder of the business. Another principal of the business at the time of the order was Hector Lomeli. He has challenged his responsibly connected status.
- MD Food Market Inc., operating out of Tampa, Fla., for failing to pay a $24,960 award in favor of a Florida seller. As of the issuance date of the reparation order, Maikel Duarte was listed as the officer, director, and major stockholder of the business.
- E Fresh Produce Inc., operating out of Los Angeles, Calif., for failing to pay a $5,831 award in favor of a California seller. As of the issuance date of the reparation order, Juan Martinez 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 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 4,250 PACA claims involving more than $77 million. Our experts also assisted more than 7,000 callers with issues valued at approximately $110 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).
