Washington - The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Camelot Cattle Company LLC (Camelot) of Morrilton, Ark., on Aug. 6, 2021, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Camelot waived its rights to a hearing and paid a civil penalty of $4,000.
Camelot had Custodial Account shortages on Nov. 27, 2020, and Dec. 31, 2020, which were $81,717 and $48,815, respectively. Camelot failed to reimburse the Custodial Account by the close of the seventh day following the sale of livestock.
A custodial account is a trust account designated for shippers’ proceeds from the sale of livestock in trust for sellers. Operating with custodial account shortages is a violation of the P&S Act and places livestock sellers at risk of not being paid timely or at all.
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. USDA may offer alleged violators the option of waiving their right to a hearing and enter into a stipulation agreement to quickly resolve alleged violations.
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
