USDA Reaches a Consent Decision with Eugene Nisly d/b/a Carrollton Livestock Auction for Violations of the P&S Act

Friday, February 7, 2020 - 9:30am

Release No.: 031-20

WASHINGTON, Feb 7, 2020 – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on Jan. 31, 2020, the U.S. Department of Agriculture (USDA) reached a consent decision against Eugene Nisly, doing business as Carrollton Livestock Auction (Carrollton), Carrollton, Ohio, for alleged violations of the Packers and Stockyards (P&S) Act.

An investigation by USDA’s Agricultural Marketing Service resulted in the issuance of an administrative complaint against Carrollton for failure to properly use and maintain his custodial account. The complaint alleged custodial account shortages of $50,864 on Dec. 31, 2018, and $42,516 on Feb. 28, 2019. The shortages were due, in part, to Carrollton’s failure to deposit into the account all proceeds collected from the sale of consigned livestock within the timeframe prescribed by P&S Act regulations, as well as misuse of the custodial account. In addition, Carrollton issued 33 insufficient funds checks, which are also violations of the Act.

Under the consent decision, Carrollton agreed to a suspension of five years and thereafter, until he fully repays the livestock sellers.

In addition, Carrollton must cease and desist from failing to pay the full purchase price for livestock within the time frame required; using funds received from the sale of consigned livestock for any purpose other than those specifically permitted; issuing custodial account checks without having sufficient funds available; and failing to properly use and maintain the Custodial Account for Shippers' Proceeds in strict conformity with the P&S Act.

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

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