Release No.: 038-19
WASHINGTON, April 8, 2019 – The U.S. Department of Agriculture’s Agricultural Marketing Service (AMS) has entered a consent decision with Glean Plunkett and Fort Payne Stockyards Inc. (Fort Payne), Fort Payne, Alabama, for alleged violations of the Packers and Stockyards (P&S) Act.
Fort Payne agreed on March 7, 2019, to pay a civil penalty of $1,000 and agreed to a cease and desist order requiring it to maintain its Custodial Account for Shippers' Proceeds and to use funds received from the sale of consigned livestock for purposes specifically permitted by the P&S Act and regulations.
An AMS investigation revealed shortages in Fort Payne’s custodial account of $169,619 on June 17, 2016 and $252,257, on August 22, 2016. A custodial account is a trust account that is a separate bank account designated for livestock sellers’ proceeds. These shortages were believed to be due, in part, to Fort Payne’s failure to deposit into the account an amount equal to the proceeds receivable from the sale of consigned livestock within the timeframe prescribed by the P&S Act. This placed livestock sellers at risk of 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 Stuart Frank, Director, Packers and Stockyards Division, Fair Trade Practices Program, at (515) 323-2586, or by email at Stuart.Frank@usda.gov.
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