The USDA issued a complaint against Stephen Smeal and Mendy Smeal, a Texas partnership doing business as Fatted Calf Cattle Farms #6, for alleged violations of the Packers and Stockyards (P&S) Act.
“The P&S Act is a fair-trade practice and payment protection law that promotes fair and competitive marketing environments for the livestock, meat, and poultry industries,” according to the press release.
According to an investigation by USDA’s Agricultural Marketing Service, the partnership issued 10 checks with insufficient funds to two markets. Out of those 10 checks, eight of them resulted in delayed payment much later than the parties’ credit agreements allows.
“In these eight transactions, Fatted Calf Cattle purchased 278 head of livestock and paid $103,195, plus $260 in invoice adjustments, six to 37 days late,” according to the release.
According to the P&S Act, the subject must issue full payment for livestock within the end of the first business day post-purchase and transfer of possession. If someone fails to do so, it will be considered a violation of the P&S Act.
