Release No.: 099-18
WASHINGTON, July 25, 2018 – On July 12, 2018, Plainville Livestock Commission Inc., and Tyler D. Gillum of Plainville, Kansas (collectively, Plainville), a market agency selling livestock on commission subject to the Packers and Stockyards (P&S) Act, entered into a Consent Decree with the U.S. Attorney’s Office for the District of Kansas. Plainville agreed to suspend its market agency activities for two consecutive, regularly conducted commissioned livestock sales on July 24 and July 31, 2018. It also agreed to pay a civil penalty of $117,750 with $67,750 held in abeyance for six years. Plainville will pay the remaining $50,000 in installments with the first installment due August 1, 2018.
The Consent Decree, entered on July 12, 2018, by the United States District Court for the District of Kansas, permanently enjoins Plainville from: (1) engaging in business without properly maintaining its custodial account for shipper’s proceeds; (2) engaging in business without properly remitting sales proceeds before the close of the next business day following the sale; (3) issuing checks or any kind of payment instrument in purported payment of livestock purchases without having maintaining sufficient funds on deposit and available in the custodial account upon which the checks or instruments are drawn to pay the checks or instruments when presented for payment; and (4) engaging in business without properly maintaining all business records.
This Consent Decree follows a previous Consent Decision and Order issued by the Secretary of Agriculture (Secretary) on October 22, 2012, that requited Plainville to cease and desist for failing to maintain its custodial account for shipper’s proceeds in full compliance with the P&S Act. A second Consent Decision and Order issued by the Secretary on March 4, 2014, likewise ordered Plainville to cease and desist for failing to maintain its custodial account for shipper’s proceeds in strict conformity with the P&S Act. 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 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 email@example.com.
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