Washington - The U.S. Department of Agriculture (USDA) issued a complaint and notice of hearing against Carolina Horse Sales LLC (Carolina) and Troy John Kain (Kain) of Madison, N.C., for alleged violations of the Packers and Stockyards (P&S) Act.
An investigation by USDA’s Agricultural Marketing Service (AMS) revealed that on or about January through March 2020, Carolina and Kain had a custodial account shortage of $9,568, misused livestock proceeds totaling $41,283; failed to remit proceeds due to livestock consigners totaling $6,561; issued insufficient funds checks; and failed to keep and maintain records which fully and correctly disclose all business transactions.
On July 22, 2021, USDA reached a consent decision against Carolina and Kain. Under the Consent Decision and Order, Carolina and Kain are ordered to cease and desist from: (1) failing to properly use and maintain its custodial account; (2) misusing funds from sales of consigned livestock; (3) failing to remit, when due, the proceeds of livestock sales to consignors; (4) issuing checks without having and maintaining sufficient funds on deposit; and (5) failing to keep and maintain records. Additionally, Carolina agreed to a suspension of five years and Kain is prohibited from registering, individually or otherwise, to engage in business subject to the Act for a period of five years. The full default decision and order is available on the AMS Packers and Stockyards Enforcement page.
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 Packers and Stockyards Act, contact Stuart Frank, Packers and Stockyards Division, at (202) 720-7051, or by email at Stuart.Frank@usda.gov.
Source: U.S. Department of Agriculture Agricultural Marketing Service
