USDA Settles a Case with Farinelli Enterprises LLC Resulting in a $1,500 Penalty

Date: 
Tuesday, May 8, 2018 - 12:00pm
Contact Info: 

Release No.: 048-18

WASHINGTON, May 8, 2018 – On Dec. 15, 2017, Farinelli Enterprises LLC (Farinelli), Le Grand, Calif., waived its right to a hearing, entered into a stipulation agreement and paid a civil penalty $1,500 for alleged violations of the Packers and Stockyards (P&S) Act.

In August 2013, Farinelli signed a consent decision (Docket No. 12-0583) agreeing to cease and desist from failing to pay when due for livestock within the timeframe required by the P&S Act.  In addition, Farinelli agreed to cease issuing checks in payment for livestock purchases without having and maintaining sufficient funds on deposit and available in the accounts upon which they were drawn (NSF) to pay such checks when presented.

The USDA Agricultural Marketing Service (AMS) conducted an investigation to verify Farinelli’s compliance with the order in the consent decision.  The investigation reviewed operations of Farinelli from May 2015 through January 2016.  AMS found Farinelli established a written credit agreement with a livestock seller and presented checks in payment for livestock within the timeframe specified in the credit agreement.  However, Farinelli issued checks to pay for livestock that Farinelli’s bank returned NSF on at least eight (8) occasions.  This caused payment delays of four (4) to 17 days beyond the time allowed under the credit agreement in further violation of the order in Docket No. 12-0583.  Payment for all livestock is due before the close the business day following the purchase and trans­fer of possession of the livestock.  Failure to pay when due for livestock, and issuing insufficient funds checks for livestock violate the P&S Act.

The P&S Act, 1921, (7 U.S.C. § 181, et seq.) authorizes the Secretary of Agriculture to assess civil penalties of not more than $11,000 per count against any person who violates the statute(s) cited above, after notice and opportunity for hearing on the record.

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 s.brett.offutt@ams.usda.gov.

Get the latest Agricultural Marketing Service news at www.ams.usda.gov/news or follow us on Twitter @USDA_AMS. You can also read about us on the USDA blog.

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