Release No.: 072-14

Contact:

Nadine Wilkins (202) 720-8998

WASHINGTON, March 10, 2014 – The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).

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

--First Coast of Miami LLC, operating out of Miami, Fla., for failing to pay a $27,313 award in favor of an Alabama seller. As of the issuance date of the reparation order, Pedro Gonzalez was listed as the sole member of the business.

--David Gonzalez, doing business as Gonzalez Produce, operating out of Plant City, Fla., for failing to pay a $9,500 award in favor of a Texas seller. As of the issuance date of the reparation order, David Gonzalez was listed as the sole proprietor of the business.

--Staunton Fruit & Produce Co. Inc., operating out of Verona, Va., for failing to pay a $4,533 award in favor of a Canada seller. As of the issuance date of the reparation order, John M. Moskowitz and Terri R. Rector were listed as the officers, directors, and/or major stockholders of the business.

--R & C Distributing Inc., operating out of Albuquerque, N.M., for failing to pay a $2,294 award in favor of a Colorado seller. As of the issuance date of the reparation order, Carlos E. Jaramillo was listed as the officer, director, and major stockholder of the business.

PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license or impose sanction on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. 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.

The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.

In the past three years, USDA resolved approximately 4,600 claims filed under PACA involving more than $87 million. This is just one more way USDA continues to support the fruit and vegetable industry.

For more information, contact John Koller, Chief, Dispute Resolution Branch at (202) 720-2890, by fax at (202) 690-2815, or by email at disputeresolutionsection@ams.usda.gov regarding this matter.