Release No.: 042-20
WASHINGTON, Feb. 21, 2020 – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on Feb. 12, 2020, the U.S. Department of Agriculture (USDA) issued a complaint against Michael Austin Hand (Hand) of Ocilla, Ga., for alleged violations of the Packers and Stockyards (P&S) Act.
An investigation by USDA’s Agricultural Marketing Service (AMS) revealed that from July 14, 2015, to Dec. 20, 2017, Hand purchased $106,901 of livestock at two auction markets and failed to pay the markets a total of $95,080. On four dates from Nov. 1, 2017, through Dec. 19, 2017, Hand failed to pay timely for livestock purchases totaling $50,844. The investigation also revealed that Hand issued five checks for livestock purchases totaling $142,767 without enough funds in his bank account.
Hand was operating while he was insolvent. As of Dec. 11, 2017, Hand’s current liabilities exceeded his current assets by $61,797. As of Jan. 16, 2018, his current liabilities exceeded his current assets by $60,025. Also, Hand failed to maintain records regarding his accounts payable, such as issued and voided checks, a properly maintained check register, or amounts still owed for livestock. He did not track amounts owed to him for livestock, nor did he properly complete deposit slips showing amounts received in payment for livestock. Hand also failed to keep records concerning his inventory of dealer livestock for resale.
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, issuing checks without sufficient funds for purchases, and operating while insolvent are unfair trade practices and violations of the P&S Act.
Hand will have 20 calendar days following receipt of the complaint to respond directly to the USDA Administrative Law Judge or be found in violation and subject to penalty.
The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $27,500 per violation against any person after having received the complaint. If the allegations are admitted or proven in an oral hearing, Hand 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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