The U.S. Department of Agriculture (USDA) issued an administrative complaint on March 10, 2022, against Clinton Livestock Auction LLC (Clinton) and its owners, Jack and Sandra Berry (Berry) of Clinton, Okla., for alleged violations of the Packers and Stockyards (P&S) Act.
An investigation by USDA’s Agricultural Marketing Service (AMS) revealed that Clinton and Berry failed to properly maintain its custodial account resulting in custodial shortages of $77,176 on June 21, 2020, and $26,707 on July 26, 2020. The shortages were due, in part, to failure to deposit into the custodial account an amount equal to the proceeds received from the sale of consigned livestock.
A custodial account is a trust account designated for shippers’ proceeds from the sale of consigned livestock maintained for sellers. Failure to reimburse the custodial account timely is a violation of the P&S Act and regulations.
The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $29,270 per violation against any person after notice and opportunity for hearing on the record. If the allegations are admitted or proven in a hearing, Clinton and Berry may be ordered to cease and desist from continuing violations of the P&S Act, and it may be assessed a civil penalty.
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.
For further information about the P&S Act, contact Kraig Roesch, Packers and Stockyards Division, at (303) 375-4291, or by email at kraig.roesch@usda.gov.
Original source can be found here.
