California company cited for $800K PACA violation

Date: 
Wednesday, 24 June 2020 - 5:17am

paca artAs a part of its efforts to enforce the Perishable Agricultural Commodities Act and ensure fair trading practices within the U.S. produce industry, the U.S. Department of Agriculture has imposed sanctions on Versa Marketing Inc. in Fresno, CA, for failing to meet its contractual obligations to the sellers of produce it purchased.

Versa failed to pay $792,939 to three sellers for produce that was purchased, received and accepted in interstate and foreign commerce from February 2018 to August 2018. This is in violation of the PACA. Versa cannot operate in the produce industry until April 23, 2022, and then only after they apply for and are issued a new PACA license by USDA.

The company’s principal, Alfred Goularte, may not be employed by or affiliated with any PACA licensee until April 23, 2021, and then only with the posting of a USDA approved surety bond.

These sanctions include barring the business and the principal operators of the business 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.

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About D. Otani Produce

In business since 1989, D. Otani Produce, Inc. has grown into one of Hawaii’s largest produce wholesalers, enjoying business with hotels, restaurants, local business institutions. We are also a major distributor to Hawaii’s retailers.

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D. Otani Produce
1321 Hart St
Honolulu, HI 96817

Phone: (808) 509-8350

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