Violators in five states are under PACA restrictions

Washington, D.C., September 9, 2026 – The U.S. Department of Agriculture (USDA) has imposed sanctions on six produce businesses for failing to meet contractual obligations to the sellers of produce they purchased from and failing 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 from engaging in PACA-licensed business or other activities without USDA approval.

The following businesses and individuals are currently restricted from operating in the produce industry:

• Galevnoah Group Corporation, operating out of West Covina, Calif., for failing to pay a $21,252 award in favor of a Texas seller. As of the issuance date of the reparation order, Jose Gallegos, Johanna Buitrago, Carlos Gallegos, and Miguel Melendrez were listed as the officers, directors, and major stockholders of the business.
• Fruit Royale Inc. BB #:171361, operating out of Delano, Calif., for failing to pay a $507,680 award in favor of an Arizona seller. As of the issuance date of the reparation order, John C. Galvan, Kosta J. Hronis, Peter J. Hronis, and Luis E. Galvan were listed as the officers, directors, and major stockholders of the business.
• The Produce Spot LLC, operating out of Pompano Beach, Fla., for failing to pay a $22,553 award in favor of a Florida seller. As of the issuance date of the reparation order, Douglas Habe was listed as the sole member and manager of the business.
• Hong Kong Supermarket of Malden LLC, operating out of Malden, Mass., for failing to pay a $105,170 award in favor of a Massachusetts seller. As of the issuance date of the reparation order, Myint J. Kyaw was listed as the sole member and manager of the business. 
• Carolina Blueberry Group LLC, operating out of Elizabethtown, N.C., for failing to pay a $112,176 award in favor of a Georgia seller. As of the issuance date of the reparation order, Bricklyn Rooks was listed as the sole member and manager of the business.
• Jason Rios, d/b/a Jaybird Produce BB #:349562, operating out of Edinburg, Texas, for failing to pay a $2,472 award in favor of a Florida seller. As of the issuance date of the reparation order, Jason Rios was listed as the sole proprietor of the business.

PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order 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 sanctions on an unlicensed 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.

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.

For more information, contact Penny Robinson-Landrigan, Dispute Resolution Branch, at (202) 720-2890, or PACAdispute@usda.gov.