Release No.: 095-18
WASHINGTON, July 12, 2018 – On June 27, 2018, Windsor Livestock Auction Co. Inc. (Windsor), Windsor, Mo., waived its right to a hearing, entered into a stipulation agreement with the U.S. Department of Agriculture (USDA) and paid a penalty of $5,500 for alleged violations of the Packers and Stockyards (P&S) Act.
The USDA Agricultural Marketing Service’s investigation of Windsor revealed custodial account shortages on Nov. 30, 2017, of $670,040.06 and Dec. 31, 2017, of $1,059,176.51. 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, 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, after notice and opportunity for hearing on the record. USDA enforcement rules provide a mechanism to quickly resolve violations of the P&S Act. USDA may offer alleged violators the option of waiving their right to a hearing and entering into a stipulation agreement to quickly resolve alleged violations.
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.
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