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PACA violators restricted in California, North Carolina and Texas

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 from whom they purchased produce and failing to pay reparation awards issued under the PACA.

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

  • Star Gold Produce Corp., operating out of Los Angeles, for failing to pay a $201,035 award in favor of an Arizona seller. As of the issuance date of the reparation order, Alicia Palacios was listed as the officer, director and/or major stockholder of the business.
  • Champions Produce LLC, operating out of Spring, TX, for failing to pay a $192,274 award in favor of a Florida seller. As of the issuance date of the reparation order, Christopher Petro and Michael Petro were listed as members or managers of the business.
  • Wayne Bailey Produce Co. LLC, operating out of Chadbourn, NC, for failing to pay a $56,400 award in favor of a North Carolina seller. As of the issuance date of the reparation order, Alice Wooten was listed as a member or manager of the business.  She has challenged her responsibly connected status.
  • RR & Tequila Limes LLC, operating out of McAllen, TX, for failing to pay an $11,600 award in favor of a Texas seller. As of the issuance date of the reparation order, Victor Rivera was listed a member or manager 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 3,500 PACA claims involving more than $58 million. PACA staff also assisted more than 7,800 callers with issues valued at approximately $148 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

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