As 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 Custom Fresh Cuts Inc. in Los Angeles for failing to meet its contractual obligations to the sellers of produce it purchased.

Custom Fresh Cuts failed to pay $696,769 to ten sellers for produce that was purchased, received and accepted in interstate and foreign commerce from November 2017 to June 2018. This is in violation of the PACA. Custom Fresh Cuts cannot operate in the produce industry until May 26, 2022, and then only after they apply for and are issued a new PACA license by USDA.

The company’s principals, Alejandro Mora and Richard Wise, may not be employed by or affiliated with any PACA licensee until May 26, 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.