USDA Cites Sunny Valley Organics Inc. in Arizona for PACA Violations

USDA/AMS Press Release:

WASHINGTON, Feb. 2, 2015 – The U.S. Department of Agriculture (USDA) has cited Sunny Valley Organics Inc., of Nogales, Ariz., for underreporting sales prices and failing to account truly and correctly to two growers in connection with 1,863 transactions.

Sunny Valley Organics Inc. consented to a finding that it engaged in flagrant and repeated violations of the Perishable Agricultural Commodities Act (PACA) and the revocation of its PACA license. As a result of these actions, Sunny Valley Organics Inc. cannot operate in the produce industry until Nov. 25, 2016, at which time it may reapply for a PACA license.

The company’s principals, Hector M. Crisantes, Sunny M. Crisantes, and Miguel R. Crisantes, may not be employed by or affiliated with any PACA licensee until Nov. 25, 2015, and then only with the posting of a USDA-approved surety bond.

USDA is required to publish the finding that a business has committed willful, repeated, and flagrant violations of the PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. 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 companies operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. USDA is authorized to suspend or revoke a company’s license for violations of PACA. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.

In the past three years, USDA resolved approximately 4,250 PACA claims involving more than $77 million. Our experts also assisted more than 7,000 callers with issues valued at approximately $11 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

For further information, contact Josephine E. Jenkins, Chief, Investigative Enforcement Branch, at (202) 720-6873, by fax at (202) 720-8868, or by email at InvestigativeEnforcement@ams.usda.gov.

Release No.: 237-14

Contact: Nadine Wilkins, (202) 720-8998, nadine.wilkins@ams.usda.gov