The U.S. Department of Agriculture (USDA) has imposed sanctions on two produce businesses in California and North Carolina for violating the Perishable Agricultural Commodities Act (PACA). These sanctions include barring the company and the business’s principal operator from engaging in PACA-licensed business or other activities without USDA approval.
Poblano Fresh Produce Corp., located in Los Angeles, California, failed to pay $230,918 to one seller for produce purchased, received, and accepted in interstate and foreign commerce from October 2019 to November 2019, according to the USDA.
Poblano Fresh cannot operate in the produce industry until Jan. 1, 2023, and then only after they apply for and are issued a new PACA license by the USDA.
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The company’s principal, Eliborio Ramirez, may not be employed by or affiliated with any PACA licensee until Jan. 1, 2022, and then only with the posting of a USDA-approved surety bond.
The USDA also sanctioned Wayne Bailey Inc. (WBI) in Chadbourn, North Carolina, for PACA violations.
WBI failed to pay $8,182,415 to 46 sellers for produce purchased, received, and accepted in interstate and foreign commerce from June 2015 to April 2018, said the USDA. WBI cannot operate in the produce industry until Dec. 31, 2022, and then only after they apply for and are issued a new PACA license by USDA.
The company’s principal, George Wooten, Jr., may not be employed by or affiliated with any PACA licensee until Dec. 31, 2021, and then only with the posting of a USDA-approved surety bond.
USDA is required to publish the finding that a business has committed willful, repeated, and flagrant violations of PACA and impose restrictions against those principals determined to be responsibly connected to the business during the violation period. 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.