Release No.: 106-18
WASHINGTON, Aug. 24, 2018 – On July 30, 2018, the U.S. Department of Agriculture, Agriculture Marketing Service (AMS) Fair Trade Practice Program (FTPP) issued a complaint against John Cathey (Cathey), Pomona, Missouri, alleging violations of the Packers and Stockyards (P&S) Act.
On April 17, 2014, Cathey notified the Packers and Stockyards Division (PSD) that he had discontinued his livestock business. As a result, Cathey’s registration became inactive effective April 17, 2014. On April 25, 2014, PSD provided Cathey a certified notice that his bond coverage would lapse on May 27, 2014. On June 16, 2014, PSD further informed Cathey that if he intended to resume operations, the P&S Act required him to obtain a new bond and reactivate his registration.
An investigation by PSD revealed that between January 13 to August 25, 2015, Cathey operated as a market agency buying on commission, when he purchased 1,043 head of livestock worth $1,693,122.23. In these transactions, Cathey earned $8,035.74 in commissions while engaged in business as a market agency buying livestock without obtaining an adequate bond or bond equivalent.
Every market agency, packer, and dealer must execute and maintain a bond applicable to the activities in which the entity engages. Operating without an adequate bond or bond equivalent is a deceptive practice and violates Section 312 (a) of the P&S Act and sections 201.29 and 201.30 of the P&S regulations.
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 P&S Act, contact Stuart Frank, Director, Packers and Stockyards Division, Fair Trade Practices Program, at (515) 323-2586, or by email at Stuart.Frank@ams.usda.gov.
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