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Sanctions imposed on four produce businesses

As part of its efforts to enforce the perishable Agricultural Commodities Act and ensure fair trading practices within the U.S. produce industry, the Department of Agriculture has imposed sanctions on four produce businesses for failing to meet their contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the PACA. 

The following businesses and individuals are currently restricted from operating in the produce industry:

  • New York Mart Group Inc., operating out of Long Island City, NY, for failing to pay an $87,659 award in favor of a California seller.  As of the issuance date of the reparation order, NYM Holding Inc., and Deng Long were listed as the officers, directors and/or major stockholders of the business.
  • Yuri and Eugene Inc., operating out of Los Angeles, for failing to pay a $56,645 award in favor of a California seller.  As of the issuance date of the reparation order, Nam Yi was listed as the officer, director and/or major stockholder of the business.
  • TNS Produce Inc., operating out of Alexandria, VA, for failing to pay a $21,524 award in favor of a Hawaii seller.  As of the issuance date of the reparation order, Susan Nguyen was listed as the officer, director and/or major stockholder of the business.
  • SCC International Inc., operating out of Rio Rico, Ariz., for failing to pay a $4,704 award in favor of an Arizona seller.  As of the issuance date of the reparation order, Sergio Chamberlain was listed as the officer, director and/or major stockholder of the business.

These sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from USDA.  By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.

In the past three years, USDA resolved approximately 3,350 PACA claims involving more than $63 million. PACA staff also assisted more than 8,000 callers with issues valued at approximately $156 million.