USDA Reaches a Consent Decision and Civil Penalty with Larson Livestock, Inc. and Carson Larson for P&S Act Violations

WASHINGTON, April 24, 2020 – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on April 17, 2020, the U.S. Department of Agriculture (USDA) reached a consent decision against Larson Livestock, Inc. and Carson Larson (Larson) of Columbia, S.D., for alleged violations of the Packers and Stockyards (P&S) Act.

An investigation by USDA’s Agricultural Marketing Service resulted in the issuance of an administrative complaint against Larson on April 16, 2019. The investigation found that from November 2015 to March 2016 Larson falsified purchase prices and weights in approximately 21 transactions involving 41 head of cattle. Larson also coordinated with Sisseton Livestock of Sisseton, South Dakota, to alter invoices in approximately 22 transactions from December 2015 to March 2016. From September 2015 to March 2016, Larson falsified invoices to show the purchase of 19 head of cattle that did not exist.  Additionally, from July 2017 to December 2017, Larson bought back 788 head of his own livestock that had been purchased at a lower price to fill orders for his principal.

Under the consent decision, Larson was assessed a civil penalty of $50,000 and is suspended as a registrant from all livestock operations for two years. Larson is also prohibited from being employed by any entity where he would engage in activities for which registration is required.

In addition, Larson, including its agents and employees, must cease and desist from engaging in deceptive and unfair practices, including:

• Creating, falsifying, or inducing the creation of invoices that show false price or weight;
• Inaccurately representing the purchase price or weight in transactions where they are a market agency buying or selling livestock in commerce;
• Taking a profit on transactions when purchasing livestock on a commission basis without disclosing those profits or commissions to their principals;

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 P&S Act, contact Stuart Frank, Packers and Stockyards Division, at (515) 323-2586, or by email at stuart.frank@usda.gov.

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