Release No.: 102-18
WASHINGTON, Aug. 24, 2018 – On July 17, 2018, the U.S. Department of Agriculture, Agriculture Marketing Service (AMS) issued an administrative complaint to Nicholas Meat LLC., and Deborah Nicholas (Nicholas), Loganton, Pennsylvania, for alleged violations of the Packers and Stockyards (P&S) Act.
An investigation by AMS revealed from June 1 to July 31, 2015, Nicholas operated as a packer in 45 transactions involving the purchase of 14,916 head of livestock for slaughter worth $20,036,013.57. In each of these transactions, Nicholas engaged in the 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 to obtain an appropriate bond or bond equivalent. On February 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 $420,000.00. The NODs also notified Nicholas that failure to comply with the bonding requirements could result in an administrative complaint being filed.
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 a violation of sections 201.29 and 201.30 of the 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 P&S Act, contact Stuart Frank, Director, Packers and Stockyards Division, Fair Trade Practices Program, at (515) 710-0625, or by email at Stuart.Frank@ams.usda.gov.
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