Washington - As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on Sept. 21, 2021, the U.S. Department of Agriculture (USDA) reached a consent decision with MCCS Livestock Inc., doing business as Leflore County Livestock Auction (LeFlore), Wister, Okla., for alleged violations of the Packers and Stockyards (P&S) Act.
An investigation by USDA’s Agricultural Marketing Service (AMS) revealed that LeFlore failed to properly maintain its custodial account resulting in custodial shortages of $150,170 on March 24, 2020, and $80,634 on April 24, 2020. The shortages were due, in part, to LeFlore’s failure to deposit into the custodial account an amount equal to the proceeds received from the sale of consigned livestock.
Under the consent decision, LeFlore was suspended as a registrant for seven days and thereafter until the custodial shortage is proven to have been corrected. LeFlore was ordered to cease and desist from failing to properly use and maintain the Custodial Account for Shippers' Proceeds. Failure by livestock markets to properly maintain their custodial account could lead to sellers not being paid timely or at all.
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 Kraig Roesch, Packers and Stockyards Division, at (303) 375-4291, or by email at kraig.roesch@usda.gov.
Source: U.S. Department of Agriculture Agricultural Marketing Service
