Release No.: 065-19
WASHINGTON, May 31, 2019 – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on May 9, 2019, the U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) issued an administrative complaint against Ashville Stockyard Inc. (Ashville), Bradley Plunkett and Tilda Plunkett (Plunketts) of Ashville, Ala., for alleged violations of the Packers and Stockyards (P&S) Act.
An investigation by AMS revealed Ashville and the Plunketts failed to properly use and maintain its custodial account, endangering the faithful and prompt accounting of shippers’ proceeds and payments due the owners or consignors of livestock. AMS’ investigation revealed custodial shortages of $68,821 on Oct. 13, 2017; $110,869 on Dec. 20, 2017; $18,507 on March 29, 2018, and $34,720 on May 8, 2018.
The shortages in Ashville’s custodial account were due, in part, to depositing $17,175 in proceeds from the sale of livestock directly into Ashville’s general account rather than its custodial account. Ashville and the Plunketts also misused the custodial account by transferring $35,507 in custodial account funds into its general account while a shortage existed in the custodial account.
A custodial account is a trust account designated for shippers’ proceeds from the sale of livestock in trust for sellers. Operating with custodial account shortages and custodial account misuse are violations of the P&S Act and places livestock sellers at risk of not being paid timely or at all.
Ashville and the Plunketts have 20 calendar days following receipt of the complaint to file an answer to the allegations.
The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $28,061 per violation against any person after notice and opportunity for hearing on the record. If the allegations are admitted, or proven in an oral hearing, Ashville and the Plunketts may be ordered to cease and desist from violating the (P&S) Act and assessed a civil penalty.
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, Packers and Stockyards Division, at (515) 323-2586, or by email at stuart.frank@usda.gov.
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