Public Affairs
WASHINGTON, April 10, 2020 – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on Feb. 4, 2020, the U.S. Department of Agriculture (USDA) issued a Decision and Order Without Hearing by Reason of Default against Christopher Matthew Klaiber (Klaiber) of Willow Wood, Ohio, for violations of the Packers and Stockyards (P&S) Act. The Decision and Order became final and effective as of March 23, 2020.
An investigation by USDA’s Agricultural Marketing Service in April and May 2018 revealed that Klaiber failed to pay timely for livestock purchases totaling $339,618 and failed to pay the full purchase price for $263,735 of this total. The investigation also revealed that Klaiber issued three checks for livestock purchases totaling $214,242 without sufficient funds to support the payment of those checks.
The P&S Act requires subject entities to issue the 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.
Under the Default Decision and Order, Klaiber must pay a civil penalty of $231,535 with $218,735 offset for restitution to livestock sellers. He must also cease and desist from engaging in deceptive and unfair practices, including failing to pay for livestock purchases; failing to pay within the time period required by the Act for livestock purchases; and issuing checks for which he does not have and maintain sufficient funds on deposit to pay such checks when presented.
Klaiber is also suspended as a registrant from all livestock operations as a dealer for a period of five years, beginning March 23, 2020.
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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