AMS Issues an Amended Complaint to Nicholas Meat LLC and Eugene Nicholas for Alleged Violations of the P&S Act

Date: 
Tuesday, March 19, 2019 - 9:00am
Contact Info: 

Release No.: 031-19

WASHINGTON, March 19, 2019 – On Dec. 21, 2018, the U.S. Department of Agriculture, Agricultural Marketing Service (AMS) issued an amended administrative complaint removing Deborah Nicholas and naming Eugene Nicholas, as a respondent, along with Nicholas Meat LLC (Nicholas), Loganton, Pa., for alleged violations of the Packers and Stockyards (P&S) Act.

An investigation by AMS revealed that from June 1, 2015 to July 31, 2015 Nicholas operated as a packer in 45 transactions involving the purchase of approximately 14,916 head of livestock for slaughter for $20,036,013.  In each of these transactions, Nicholas engaged in business as a packer buying livestock in commerce for the purpose of slaughter without maintaining an adequate bond or bond equivalent.

Nicholas received prior Notices of Default (NOD) of such violations.  On December 6, 2010 and December 3, 2013 Nicholas received NODs stating that the P&S Act required a packer operating in interstate commerce obtain an appropriate bond or bond equivalent.  On Feb. 10, 2014, Nicholas received a NOD stating that based on the fiscal year 2013 packer inquiry it submitted, Nicholas was required to obtain a bond or bond equivalent for $420,000.  The NODs also notified Nicholas that failure to comply with the bonding requirements could result in an administrative complaint.

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 in violation of P&S regulations.

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, Director, Packers and Stockyards Division, Fair Trade Practices Program, at (515) 323-2586, or by email at Stuart.Frank@usda.gov.

Get the latest Agricultural Marketing Service news at www.ams.usda.gov/news or follow us on Twitter @USDA_AMS. You can also read about us on the USDA blog.

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