What happened to a couple of Miami guys who didn’t pay for over $1 million of food
The habit of not paying for the fruits and vegetables they ordered finally got two Miami guys and their North Miami-Dade food distribution company kicked out of the produce business this week.
Tuesday's USDA announcement stated American Fruit & Produce Corp. stiffed 18 sellers to the tune of $1,034,745 for produce bought from March 2018 through October 2022. This flagrantly violates the Perishable Agricultural Commodities Act (PACA), a 1930 law requested by the produce industry to ensure fair trade.
American Fruit's PACA license is revoked, putting it out of the produce business until at least Sept. 6, 2026. Company president Hugo Acosta Jr. and David Acosta can't work for or be associated with a PACA-licensed produce company until Sept. 6, 2025 and, after that, can only do so after posting a surety bond.
The USDA didn't need to be re-introduced to the Acostas. A September 2021 complaint to the USDA claimed American Fruit didn't make prompt payment on $667,214 of produce bought from 21 sellers. A May 9, 2022 USDA announcement said American Fruit paid those suppliers their money as well as ponied up a $30,000 civil penalty.
Friday and Sunday phone calls to American Fruit & Produce hit a busy signal. State records say American Fruit remains an active company, but has switched its principal address to 3130 W. 15th Ave. in Hialeah from 2900 NW 75th St.
A lawsuit filed in Miami-Dade said American Fruit left the Northwest 75th Street location last December after a dispute with the landlord.
READ MORE: Here's why an inspector stopped production of two products at a Miami food company
What is PACA?
" PACA requires that all commission merchants , dealers, and brokers obtain a valid and effective license from the USDA Secretary," the National Agricultural Law Center explains. "Once an applicant has paid a licensing fee to the Department of Agriculture, the applicant receives a license that entitles the holder to do business as a commission merchant, dealer, or broker under the PACA unless otherwise suspended or revoked by the USDA Secretary."
USDA records say American Fruit's license anniversary would've been Dec. 28.
The company's entry on the Produce Market Guide website says, " American Fruit and Produce is extremely proud of the personal relationship we have with our growers, packers and suppliers."
Note that shippers aren't mentioned.
Trying to get a free ride?
Among the 14 lawsuits filed against American Fruit in Miami-Dade civil court over the last six and a half years were a few by shippers who claimed they brought the food but American didn't bring the cash.
Ammy Truck Brokerage sued American Fruit for $82,000. Five payments into a settlement that let American Fruit make $3,000 monthly payments, Ammy had to go back to court for the rest of the money. Finally, a writ of garnishment had to be made on American's account.
Armstrong Transport Group can relate to Ammy's situation. Armstrong sued American Fruit, reached a $12,700 settlement, then went back to court in February 2023 after American Fruit made only seven $1,000 monthly payments. Armstrong reached another settlement.
This pattern is repeated in one of the pending Miami-Dade lawsuits against American Fruit. Land Express Transport Services said it reached a $75,675 settlement that required American pay 50 weekly payments of $1,513, starting April 28, 2023. American, the Oct. 31, 2023, lawsuit claimed, had made "14 scattered payments" for $21,000, missed 12 payments and skipped the $500 charge for late payments.
