The U.S. Department of Agriculture imposes sanctions on All American Distributing Co. for failure to pay reparation awards
VISALIA – All American Distributing Co. is one of four produce businesses throughout the country to be restricted from operating in the produce industry after failure to pay a Californian seller.
The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses around the country, one of which is located in the Central Valley. Richard Fahoum, doing business as All American Distributing Co., operating out of Visalia, was sanctioned for failing to pay a $168,629 award in favor of a California seller. These sanctions happen for those who have failed to meet contractual obligations to the sellers of produce they purchased who have also failed to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
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. In the case of All American Distributing Co., Fahoum was listed as the sole proprietor of the business as of the issuance date of the reparation order.
PACA provides an administrative forum to handle disputes involving produce transactions which may result in USDA’s issuance of a reparation order according to a release from the USDA. The issuance of a reparation then requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables.
The USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it. It will also 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.
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.
The other three produce businesses are located in Florida and Connecticut. In New Haven, Connecticut, the Italian Scallion LLC, is currently restricted from operating in the produce industry for failing to pay a $2,500 award in favor of a New York seller. As of the issuance date of the reparation order, Salvatore Orlando Sampieri was listed as the member of the business.
The remaining two businesses were operating out of Miami Florida. WWD Fruits LLC, doing business as B Fruits, is currently restricted from operating in the produce industry for failing to pay a $60,725 award in favor of a Texas seller. As of the issuance date of the reparation order, Damian V. Segal was listed as the manager/member of the business.
Dominic Produce LLC, is currently restricted from operating in the produce industry for failing to pay a $5,706 award in favor of a Florida seller. As of the issuance date of the reparation order, Solanyi Garcia and Felix G. Garcia were listed as managers of the business.