Release No.: 048-19
WASHINGTON, April 23, 2019 – The U.S. Department of Agriculture, Agricultural Marketing Service (AMS) reached a consent decision with Michael Whitten (Whitten) for alleged violations of the Packers and Stockyards (P&S) Act while operating as a dealer buying and selling livestock and as a market agency buying on commission. The consent decision was signed by Administrative Law Judge, Jill S. Clifton, on April 9, 2019.
An investigation by AMS revealed that on eight dates from January 20, 2015, through June 2, 2015, Whitten instructed an auction market to re-invoice livestock purchases to show sale prices and/or weights greater than the actual sale prices and/or weights. He also issued the falsified invoices to his primary buyers to gain greater payment than warranted. On 21 dates from January 5, 2015, through June 15, 2015, Whitten instructed an auction market to generate invoices depicting entirely fabricated livestock purchases. Whitten provided the auction market with fictitious weight and price information. Using the weight and price figures provided by Whitten, the auction market generated false invoices the market gave directly to Whitten’s primary buyer without livestock being weighed or sold through the auction for competitive bidding.
Creating purchase invoices that do not fully and correctly disclose transactional information is a violation of the P&S Act and regulations.
Whitten, his agents and employees, were ordered to cease and desist from making or causing to be made, issuing, or circulating any false or misleading reports, records, or representations concerning the market conditions or the prices or sale of any livestock. In addition, Whitten was assessed a civil penalty in the amount of $13,500.
P&S regulations state that no dealer may make, issue, or circulate any false or misleading representations concerning the sale of any livestock. Such a practice is considered unfair and is a violation of the P&S Act.
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 Stuart Frank, Director, Packers and Stockyards Division, Fair Trade Practices Program, at (515) 323-2586, or by email at Stuart.Frank@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.
USDA is an equal opportunity provider, employer, and lender