Release No.: 078-18
WASHINGTON, June 18, 2018 – On June 7, 2018, Nebraska Livestock Sales of Tecumseh, LLC, doing business as Tecumseh Livestock Auction (Tecumseh) in Tecumseh, Nebraska, waived its right to a hearing, entered into a stipulation agreement with the U.S. Department of Agriculture (USDA) and paid a penalty of $3,000 for alleged violations of the Packers and Stockyards (P&S) Act.
The USDA Agricultural Marketing Service’s (AMS) investigation of Tecumseh revealed custodial account shortages of $18,116 on Dec. 29, 2017, and of $92,495 on Jan. 25, 2018. A custodial account is a trust account that is a separate bank account designated for shippers’ proceeds. Operating with custodial account shortages is a violation of Section 312(a) of the P&S Act, and places livestock sellers at risk of not being paid timely or at all.
The P&S Act, 1921, (7 U.S.C. § 181, et seq.) authorizes the Secretary of Agriculture to assess civil penalties of not more than $11,000 per count against any person who violates the statute(s) cited above, after notice and opportunity for hearing on the record.
USDA enforcement rules provide a mechanism to quickly resolve violations of the P&S Act. USDA may offer alleged violators the option of waiving their right to a hearing and entering into a stipulation agreement to quickly resolve alleged violations.
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 Brett Offutt, Fair Trade Practices Program, Packers and Stockyards Division, at (202) 720-7051, or by email at s.brett.offutt@ams.usda.gov.
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