WASHINGTON, Feb 11, 2020 – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on Feb. 4, 2020, the U.S. Department of Agriculture (USDA) reached a consent decision with MCCS Livestock Inc., doing business as Leflore County Livestock Auction (LeFlore), Wister, Okla., for alleged violations of the Packers and Stockyards (P&S) Act.
An investigation by USDA’s Agricultural Marketing Service (AMS) revealed that LeFlore failed to properly use and maintain its custodial account resulting in custodial shortages of $228,923 on Jan. 22, 2018, and $159,855 on Feb. 26, 2018. The shortages were due, in part, to failure to deposit into the custodial account an amount equal to the proceeds received from the sale of consigned livestock and issuing custodial checks for unsupported transportation fees.
Under the consent decision, LeFlore was assessed a civil penalty of $11,000 and ordered to cease and desist from failing to properly use and maintain the Custodial Account for Shippers' Proceeds and to using funds received from the sale of consigned livestock for any purpose other than those specifically permitted by P&S Act regulations. Failure by buyers to properly maintain their custodial account could lead to sellers 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 Stuart Frank, Director, Packers and Stockyards Division, Fair Trade Practices Program, at (515) 323-2586, or by email at Stuart.Frank@usda.gov.
USDA is an equal opportunity provider, employer, and lender
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