The U.S. Department of Agriculture (USDA) imposed penalties on 12 fresh produce companies in six states. The federal agency stated that the sanctioned businesses failed to meet their contractual obligations to the sellers of produce, debts totaling nearly $2 million, and for failing to pay reparations awards issued under the Perishable Agricultural Commodities Act (PACA).
These penalties include suspending the companies’ PACA licenses and barring the companies’ principal operators from engaging in PACA-licensed business or other activities without USDA approval.
The following businesses and individuals are currently restricted from operating in the produce industry:
- Rain Forest Produce Inc., based on Los Angeles, Calif., failed to pay $1,576,260 to 33 sellers for produce that was purchased, received and accepted in interstate and foreign commerce from October 2018 to February 2020. This is in violation of the PACA. Rain Forest cannot operate in the produce industry until Oct. 12, 2023, and then only after they apply for and are issued a new PACA license by USDA. The company’s principals, Fernando Pantoja and Tony Perez, may not be employed by or affiliated with any PACA licensee until Oct. 12, 2022, and then only with the posting of a USDA approved surety bond.
- Carla Langarcia, doing business as Barajas Produce, operating out of Los Angeles, Calif., for failing to pay a $7,293 award in favor of a California seller. As of the issuance date of the reparation order, Carla Langarcia was listed as the sole proprietor of the business.
- Burbano Corporation, doing business as CasaBella Farms, operating out of Miramar, Fla., for failing to pay a $142,381 award in favor of a Florida seller. Luis Burbano was listed as the officer, director and major stockholder of the business.
- H. Brooks and Company LLC, operating out of New Brighton, Minn., for failing to pay an $87,328 award in favor of a Michigan seller. New Harvest Foods Inc. and Jason Jaynes were listed as managers and members of the business.
- Don Pepes Avocados LLC, operating out of San Benito, Texas, for failing to pay a $39,250 award in favor of a California seller. Jose Guadalupe Marroquin Cardenas and Jose Ernesto Trevino were listed as managers and members of the business.
- JB Produce LLC, operating out of Denver, Colo., for failing to pay a $16,999 award in favor of a California seller. Daniel Perez-Perez was listed as the member and/or major stockholder of the business.
- UMV Foods Corporation, operating out of Doral, Fla., for failing to pay a $17,215 award in favor of a New Jersey seller. Damian Vega was listed as the officer, director and major stockholder of the business.
- Fong Shing International Corp., operating out of Maspeth, N.Y., for failing to pay a $53,540 award in favor of a Texas seller. Minh Thai was listed as the officer, director and major stockholder of the business.
- Mercatropic Corp., operating out of Mission, Texas, for failing to pay a $26,116 award in favor of a Florida seller. Roberto De La Torre was listed as the officer, director and major stockholder of the business.
- Promised Land Farms LLC, operating out of Corona, Calif., for failing to pay a $22,269 award in favor of a Texas seller. Juan Carlos Torres was listed as a member of the business.
- Los Traviesos Produce Inc., operating out of Los Angeles, Calif., for failing to pay a $21,600 award in favor of a Florida seller. Laura Villegas was listed as the officer, director and major stockholder of the business.
- Fresh by Nature Inc., operating out of Norco, Calif., for failing to pay a $7,000 award in favor of a Missouri seller. Manuel Pinon was listed as the officer, director and major stockholder of the business.
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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.
USDA is required to publish the finding that a business has committed willful, repeated, and flagrant violations of PACA as well as 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.