Public Affairs
WASHINGTON, May 12, 2021 – The U.S. Department of Agriculture (USDA) reached a consent decision on April 9, 2021, against Jordan Dillon, doing business as L and D Cattle (Dillon) of Sanger, Texas, for alleged violations of the Packers and Stockyards (P&S) Act.
An investigation by USDA’s Agricultural Marketing Service (AMS) revealed that from April 29 through July 29, 2015, in 18 transactions involving 213 head of livestock, Dillon operated as a dealer buying and selling livestock for his own account without being registered and without obtaining the necessary bond or bond equivalent. From May 20 through July 29, 2015, Dillon failed to pay, when due, for 107 head of livestock in nine transactions totaling $214,974. Additionally, Dillon failed to pay the full purchase price for $73,324 of those purchases and issued seven checks for $141,049 without sufficient funds in its bank account to support the payment of those checks. The investigation also revealed that Dillon failed to keep and maintain records to fully and correctly disclose all dealer transactions for the business.
Under the consent decision, Dillon is ordered to cease and desist from operating without being properly registered and bonded as required by the P&S Act, failing to timely pay the full purchase price of livestock, and failing to keep and maintain all accounts, records, and memoranda that fully and accurately disclose all transactions as required by the P&S Act. Dillon is prohibited from registering or operating as a dealer for 10 years and assessed a $22,000 civil penalty with $20,500 to be held in abeyance.
The P&S Act requires that 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 the P&S Act. 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 and failure to issue the full payment for purchases is an unfair trade practice and a violation of the P&S Act. Entities subject to the P&S Act are required to keep and fully disclose accurate records regarding all transactions involved with their business when requested by AMS.
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 Jeana Harbison, Packers and Stockyards Division, at (202) 720-7051, or by email at Jeana.M.Harbison@usda.gov.
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