Release No.: 070-18
WASHINGTON, June 22, 2018 – On Jan. 10, 2018, Christopher H. Arnaman (Arnaman), Osborn, Mo., waived his right to a hearing, entered into a stipulation agreement with the U.S. Department of Agriculture (USDA) and paid a penalty of $3,000 for alleged violations of the Packers and Stockyards (P&S) Act.
The USDA Agricultural Marketing Service’s (AMS) investigation revealed Arnaman failed to pay for $114,657.22 worth of livestock from May 2017 and June 2017. During this same timeframe, Arnaman failed to pay when due in four separate transactions. 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 is a violation of Section 409(a) of the P&S Act.
The investigation also found Arnaman issued two NSF checks that were returned to the payees unpaid. Dealers must have and maintain sufficient funds on deposit available in the account upon which checks are drawn to pay them when presented. Any delay made by the dealer to the market’s normal period for collecting payment is an unfair, unjustly discriminatory or deceptive practice and is a violation of Section 312(a) of 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.
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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