Release No.: 091-18
WASHINGTON, July 25, 2018 – On June 19, 2018, the United Stated Department of Agriculture (USDA), R. Y. Livestock Sales, Inc., (R. Y. Livestock), and owner, Samuel Rodriguez, Jr., (Rodriguez) Rio Grande City, TX, settled a complaint filed against R. Y. Livestock and Rodriguez for suspected violations of the Packers and Stockyards (P&S) Act. Terms of the settlement are set forth in a consent decision in which R. Y. Livestock and Rodriguez agreed to cease and desist from violating the P&S Act. Beginning June 25, 2018, R.Y. Livestock will serve a suspension from operating under the Act for five years and Rodriguez will be barred from registering under the Act. The Consent Decision became final and effective on June 25, 2018.
The alleged violations that led to the complaint against R. Y. Livestock were revealed in an investigation by USDA Agricultural Marketing Service (AMS) that found shortages in R. Y. Livestock’s custodial account of $44.05 on May 31, 2013; of $26,467.57 on June 30, 2013; of $2,708.36 on July 11, 2013; of $2,708.36 on February 28, 2017; of $31,077.18, on May 11, 2017, and of $106,588.58, and of $148,912.64 on October 30, 2017. A custodial account is a trust account that is a separate bank account designated for shippers’ proceeds. These shortages were believed to be due, in part, to R. Y. Livestock’s failure to deposit into the account an amount equal to the proceeds receivable from the sale of consigned livestock within the timeframe prescribed by section 201.42 of the P&S regulations (9 C.F.R. § 201.42). The investigation further revealed R. Y. Livestock failed to keep and maintain accounts, records and memorandum that fully and correctly disclosed all transactions in their business, as required by section 401 of the Act (7 U.S.C. § 221).
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.
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