The U.S. Department of Agriculture's Agricultural Marketing Service issued a complaint against Alabama-based Natural Bridge Stockyard Inc. and Calvin D. Wells for allegedly violating the Packers and Stockyards Act, as reported in a March 7 news release.
An investigation conducted by Agricultural Marketing Service revealed Natural Bridge Stockyard Inc., under the control of Wells, failed to properly maintain their custodial account, resulting in shortages of $38,637 in 2018 and $14,450 in 2019. A custodial account is a trust account designated for shippers' proceeds, and failure to reimburse the account in a timely manner is a violation of the Packers and Stockyards Act.
Allegedly the account discrepancies exist because Wells made withdrawals to pay off a personal loan. The complaint also alleges Wells failed to maintain records of his business transactions. The initial administrative complaint was filed Oct. 13, 2021.
Those found in violation of the Packers and Stockyards Act can be fined by the Secretary of Agriculture by $29,270 per violation.
