Release No.: 126-18
WASHINGTON, Sept. 21, 2018 – The U.S. Department of Agriculture Agricultural Marketing Service (AMS) reached a consent decision with Carolina Stock Yards Company Inc. (Carolina), for alleged violations of the Packers and Stockyards (P&S) Act.
During an investigation, AMS discovered that Carolina’s custodial account was short by $616,703 as of July 3, 2014, and by $272,068. as of Aug. 1, 2014. Carolina had failed to reimburse the custodial account for amounts due from livestock buyers when required by the P&S Act. In signing the consent decision, Carolina agreed to reimburse the custodial account in a timely manner, and to maintain its custodial account in strict conformity with the P&S Act. Carolina also paid a civil penalty of $4,000.
The investigation also revealed that Carolina had developed and implemented a livestock insurance program of its own creation but failed to make or publish any rules or regulations regarding the program. Carolina failed to keep or maintain records regarding claims made by consignors for loss of value due to livestock injuries or death. Carolina also failed to keep or maintain records regarding payments made on claims filed by consignors under the program for these types of livestock related losses.
Carolina discontinued the livestock insurance program it created. Carolina, however, consented and agreed that for any future insurance programs, it would keep records showing claims by consignors for injured, damaged, lost, or dead livestock, the names of consignors making claims, and the nature or cause of the claims. Carolina also agreed to keep records on rates, the filing of claims, payment procedures, claim validation procedures and the length of time allowed before Carolina must pay claims.
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, Director, Packers and Stockyards Division, Fair Trade Practices Program, at (515) 323-2586, or by email at Stuart.Frank@ams.usda.gov.
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