Release No.: 115-13

Contact:

Nadine Wilkins (202) 720-8998

nadine.wilkins@ams.usda.gov

WASHINGTON, July 1, 2013 – 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:

--Zara Inc., operating out of Durham, N.C., for failing to pay a $10,548 award in favor of a Texas seller. As of the issuance date of the reparation order, Zahed Khan was listed as the officer, director, and major stockholder of the business.

--Cash Produce Inc., operating out of Crowley, Texas, for failing to pay a $15,701 award in favor of a Texas seller. As of the issuance date of the reparation order, Sheila D. Hall and Michael D. Hall were listed as the officers, directors, and major stockholders of the business.

--Martinez Fresh Produce LLC, operating out of Dallas, Texas, for failing to pay a $12,880 award in favor of a Texas seller. As of the issuance date of the reparation order, Arturo Martinez Isguerra was listed as a member of the business.

--The Alphas Company Inc., operating out of Chelsea, Mass., for failing to pay a $50,025 award in favor of a New York seller. As of the issuance date of the reparation order, John S. Alphas was listed as the officer, director, and major stockholder of the business.

PACA provides for 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 a 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 5,000 claims filed under PACA involving almost $96 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.