Release No.: 001-20
WASHINGTON, Feb. 28, 2020 – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on Dec. 20, 2019, the U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) issued an administrative complaint against Jordan Dillon, doing business as L and D Cattle (Dillon) of Sanger, Texas, for alleged violations of the Packers and Stockyards (P&S) Act.
An investigation by AMS revealed that from April 29, 2015, through July 29, 2015, in 18 transactions involving 213 head of livestock, Dillon operated as a dealer buying and selling livestock for his own account without being registered and without obtaining the necessary bond or bond equivalent. From May 20, 2015, through July 29, 2015, Dillon failed to pay, when due, for 107 head of livestock in 9 transactions totaling $214,974. Additionally, Dillon failed to pay the full purchase price for $73,324 of those purchases and issued seven checks for $141,049 without sufficient funds in its bank account to support the payment of those checks.
The investigation also revealed that Dillon failed to keep and maintain records to fully and correctly disclose all dealer transactions for the business. Entities subject to the P&S Act are required to keep and fully disclose accurate records regarding all transactions involved with their business when requested by AMS.
The P&S Act also requires that every market agency, packer and dealer must execute and maintain a bond applicable to the activity or activities in which the entity engages. Operating without an adequate bond or bond equivalent is a violation of the P&S Act. The P&S Act requires subject entities to issue full payment for livestock by the close of the first business day following purchase and transfer of possession. Failure to timely pay for livestock purchases and failure to issue the full payment for purchases is an unfair trade practice and a violation of the P&S Act.
The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $11,000 per violation against any person after notice and opportunity for hearing on the record. If the allegations are admitted, or proven in an oral hearing, Hagler may be ordered to cease and desist from violating the (P&S) Act and assessed a civil penalty.
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 (515) 323-2586, or by email at stuart.frank@usda.gov.
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