Reparation award settled


WASHINGTON, D.C. — The U.S. Department of Agriculture announced that Metro Produce Inc., operating in Dallas, Texas, has settled a reparation award issued under the Perishable Agricultural Commodities Act (PACA).


Metro Produce Inc. may again operate in the produce industry. The business' sole officer, director, and stockholder, Vijay K. Singhal, may also be employed by or affiliated with any PACA licensee.


PACA provides for damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. Interstate traders operating as commission merchants, dealers or brokers, and conducting a sufficient volume of business must be USDA-licensed.


PACA requires USDA to suspend the license of a business that fails to pay reparations awarded against it.


Citations


WASHINGTON, D.C. — The U.S. Department of Agriculture has cited eight produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).


These businesses have been barred from operating in the produce industry until their awards are paid. The businesses were served complaints by USDA and were given the opportunity to respond. USDA subsequently ordered payment of the amounts mentioned below.


The businesses are:



  • Mex Produce Sales LLC, operating in Nogales, Ariz., for failing to pay a $23,727 award in favor of a California seller. The sole member is Saul Gonzalez.

  • Sun Growers International, operating in Calexico, Calif., for failing to pay a $79,058 award in favor of a California seller. The partners are Veronica Vellatti and Sergio Vellatti.

  • Guichos Produce Inc., operating in San Jose, Calif., for failing to pay a $23,404 award in favor of a California seller. The sole officer, director, and stockholder is Roberto P. Guicho.

  • Fraden's Produce Inc., operating in Jacksonville, Fla., for failing to pay a $4,635 award in favor of a Georgia seller. The officers, directors, and major stockholders are Zelda Fraden and Andrew Fraden.

  • Florida Fresh International Inc., operating in Florida City, Fla., for failing to pay a $19,896 award in favor of a Virginia seller. The officers, directors, and major stockholders are Steven S. Sapp and Edwin B. Sapp.

  • Chava Produce Inc., operating in Forest Park, Ga., for failing to pay a $9,221 award in favor of a New Jersey seller. The sole officer, director, and stockholder is Laura Nunez.

  • Federal Bakers USA LLC, operating in Bloomingdale, Ill., for failing to pay a $257,453 award in favor of a Michigan seller. The members are Mansour Yazdani and Kambiz Zarrabi.

  • Sterling Export Inc., operating in Seattle, Wash., for failing to pay an $8,730 award in favor of a California seller. The officers, directors, and major stockholders are Melody R. Kinslow and Wayne D. Kinslow.

PACA provides for damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. Interstate produce traders operating as commission merchants, dealers or brokers, and conducting a sufficient volume of business must be USDA-licensed.


USDA is required to suspend the license of a business that fails to pay PACA reparations awarded against it. Individuals, partners, members, officers, directors, or major stockholders associated with these businesses may not be employed by or affiliated with any PACA licensee without USDA-approval.