United States Department of Agriculture

Grain Inspection, Packers and Stockyards Administration

News Release Archive 2010

Contents

FEDERAL GRAIN INSPECTION SERVICE

GIPSA Official Designation Activities�������������������������������������������������������������������������������������������������������� 4

GIPSA Official Designation Activities�������������������������������������������������������������������������������������������������������� 5

GIPSA Grain Inspection Advisory Committee to Meet������������������������������������������������������������������������������ 6

GIPSA Official Designation Activities�������������������������������������������������������������������������������������������������������� 7

GIPSA Official Designation Activities�������������������������������������������������������������������������������������������������������� 8

GIPSA Seeks Comments on Corn Standards ������������������������������������������������������������������������������������������ 9

GIPSA’s Grain Inspection Advisory Committee to Meet ������������������������������������������������������������������������� 10

PACKERS AND STOCKYARDS PROGRAM

GIPSA Alleges Barnesville Livestock, LLC and Darryl Watson Misused Their Custodial Account ��������11

GIPSA Alleges Terry Roth, dba Indian Creek Meadows Violated the Packers and Stockyards Act������� 12

GIPSA Alleges Kao Vang and Chue Thao, dba California Fresh Meats Violated the PSA ���������������� 13

GIPSA Alleges Curtis Walton, dba Walton Livestock Violated the Packers and Stockyards Act ������� 14

GIPSA Settles Two Cases Resulting in $5,150 in Civil Penalties ���������������������������������������������������� 15

Potter Sausage Co. is Assessed A Civil Penalty in the Amount of $10,000 ������������������������������������������� 16

GIPSA Alleges Gailal Sbeta and Mohammed Mesallem, Islamic Meat and Poultry Violated the PSA��� 17

GIPSA Alleges Eugene Thompson Violated the Packers and Stockyards Act ���������������������������������� 18

GIPSA Amends Registration Requirements for Market Agencies and Dealers ���������������������������������� 19

David DeStafino, dba D&D Stockhauling is Suspended as a Dealer ���������������������������������������������������� 20

GIPSA Settles Three Cases Resulting in $5,500 in Civil Penalties ���������������������������������������������������� 21

GIPSA Alleges Empire Kosher Poultry, Inc. Violated the Packers and Stockyards Act ������������������������� 22

GIPSA Settles Five Cases Resulting in $7,650 in Civil Penalties ���������������������������������������������������� 23

GIPSA Alleges John Morrell & Co. Violated the Packers and Stockyards Act ���������������������������������� 24

Terry Livestock, Inc., is Assessed a Civil Penalty in the Amount of $13,200 ���������������������������������� 25

GIPSA Settles Two Cases Resulting in $5,250 in Civil Penalties ���������������������������������������������������� 26

GIPSA Alleges John Lundgren Violated the Packers and Stockyards Act ������������������������������������������� 27

Townsend Farms of Arkansas, Inc. Pays $48,000 Penalty To Settle USDA Complaint ������������������������� 28

Noah’s Ark Processors Corp. aka Noah’s Processors, LLC Is Assessed $4500 Civil Penalty ������� 29

GIPSA Settles a Case Resulting in a $2,375 Civil Penalty ������������������������������������������������������������� 30

Tracy Carter Has Been Suspended By USDA���������������������������������������������������������������������������������������� 31

GIPSA Settles Cases Resulting in $5,875 in Civil Penalties ������������������������������������������������������������� 32
USDA Publishes Swine Contract Library Final Rule ���������������������������������������������������������������������� 33

GIPSA Settles a Case Resulting in a $1,500 Civil Penalty ������������������������������������������������������������� 34

GIPSA Alleges Duane A. Schmidt Violated the Packers and Stockyards Act ���������������������������������� 35

GIPSA Settles a Case Resulting in a $500 Civil Penalty ���������������������������������������������������������������������� 36

GIPSA Alleges Tallgrass Beef Company, LLC Violated the Packers and Stockyards Act ���������������� 37

GIPSA Alleges Gulf Packing Company, LP and Charles L. Booth Violated the PSA ������������������������� 38

GIPSA Alleges George Gonzalez Violated the Packers and Stockyards Act ���������������������������������� 39

Farmers Livestock, Inc., dba Springlake Stockyard to Pay Fine For Not Filing Reports with USDA������ 40

GIPSA Settles Cases Resulting in $4,100 in Civil Penalties ������������������������������������������������������������� 41

GIPSA Alleges New Wilmington Livestock Auction, Inc. and Thomas R. Skelton Violated the PSA������ 42

GIPSA Alleges Lonnie & Karen Martin Violated the Packers and Stockyards Act ������������������������� 43

James Bailey, dba B&B Farms, LLC is Assessed a $11,000 Civil Penalty ������������������������������������������� 44

GIPSA Settles Cases Resulting in $6,000 in Civil Penalties ������������������������������������������������������������� 45

GIPSA Alleges WW Boer Goats, Inc., aka Boer Meat Goats, LLC and Frank Willis Violated the PSA�� 46

GIPSA Alleges First World Management Services, Inc., dba Bios Zabeeha Halal Foods and ������� 47

Tahawwur H. Rana Violated the Packers and Stockyards Act ������������������������������������������������������������� 47

GIPSA Settles Five Cases Resulting in $56,487 in Civil Penalties ���������������������������������������������������� 48

GIPSA Alleges American Beef Packers, Inc. Violated the Packers and Stockyards Act ���������������� 50

Ruben S. Saavedra, Jr. is Assessed a Civil Penalty in the Amount of $5,000 ���������������������������������� 51

McLaughlin Livestock, Inc. Has Been Suspended By USDA ������������������������������������������������������������� 52

GIPSA Settles Two Cases Resulting in $3,550 in Civil Penalties ���������������������������������������������������� 53

Efren Saavedra, Jr. dba Ft. Worth & Company is Assessed a Civil Penalty in the Amount of $4,000 ��� 54

Richard Hale is Assessed a Civil Penalty in the Amount of $10,000 ���������������������������������������������������� 55

GIPSA Settles Two Cases Resulting in $5,750 in Civil Penalties ���������������������������������������������������� 56

GIPSA Alleges Vermilion Ranch Co., dba Northern Livestock Video Auction Violated the PSA ������� 57

GIPSA Alleges Newman Livestock Auction Misused Their Custodial Account ���������������������������������� 58

GIPSA Alleges H.D. Edwards Operated as a Dealer without a Bond ���������������������������������������������������� 59

GIPSA Alleges Daniel Murray Did Not Maintain an Adequate Bond In Violation of the PSA������������������ 60

Jeff Dutton, dba Jeff Dutton Cattle Co., and dba Bar 7 Cattle Co. is Suspended as a Registrant ������� 61

GIPSA Settles a Case Resulting in a $3,500 Civil Penalty ������������������������������������������������������������� 62

GIPSA Identifies Livestock Dealers and Market Agencies with Expired Registrations ������������������������� 63

GIPSA Settles a Case Resulting in a $1,500 Civil Penalty ������������������������������������������������������������� 64

Knightstown Livestock Auction Misused Their Custodial Account ���������������������������������������������������� 65

GIPSA Posts Stockyard Tariffs on Web Site ���������������������������������������������������������������������������������������� 66

GIPSA Extends Comment Period for Farm Bill Proposed Rule ������������������������������������������������������������� 67

GIPSA Settles a Case Resulting in a $1,000 Civil Penalty ������������������������������������������������������������� 68

El Campo Livestock Co., Inc. and John Banker are Assessed a $4000 Civil Penalty ��������������������������� 69

Matteson Livestock Assessed a Civil Penalty in the Amount of $17,500 ������������������������������������������� 70
GIPSA News Release 2010

Page 3

GIPSA Alleges Royal Halal Meats, Inc. Failed to Pay for Livestock Purchases ���������������������������������� 71

Warren Hudspeth is Suspended as a Dealer ���������������������������������������������������������������������������������������� 72

GIPSA Settles a Case Resulting in a $1,250 Civil Penalty ������������������������������������������������������������� 73

GIPSA Settles a Case Resulting in a $2,500 Civil Penalty ������������������������������������������������������������� 74

GIPSA Settles Two Cases Resulting in $2,000 in Civil Penalties ���������������������������������������������������� 75

Deward B. Wolfe and Jonathan Wolfe, dba Wolfe Livestock are assessed a $2200 Civil Penalty ������� 76

Kao Vang and Chue Thao, dba California Fresh Meats are Assessed A $14000 Civil Penalty ������������� 77

E.M.M. Pig Placement Co., LLC is Suspended as a Registrant������������������������������������������������������������� 78

Clarence Ricky Fisher, aka Ricky Fisher is Assessed a Civil Penalty in the Amount of $12,500 ������� 79

GIPSA Settles Two Cases Resulting in $8,350 in Civil Penalties ���������������������������������������������������� 80

Otis Lewis Fortner II, dba Lewie Fortner Livestock is assessed A $2000 Civil Penalty ������������������������� 81

James Masters LLC is Assessed a $2,640 Civil Penalty ���������������������������������������������������������������������� 82

GIPSA Alleges Ravenna Auction, LLC Misused Custodial Account and Misrepresented Weights ������� 83

GIPSA Alleges Randall J. Unger Failed to Pay for Livestock Purchases ������������������������������������������� 84

GIPSA Alleges Lake Odessa Livestock Auction, Inc. & LaVerne Lettinga Violated the PSA������������������ 85

GIPSA Alleges JBS USA, LLC, fka Swift & Company and Swift Pork Company Violated the PSA�������� 86

GIPSA Alleges Charles Jeffers Failed to Pay for Livestock Purchases ������������������������������������������� 87

Terry Roth, dba Indian Creek Meadows is assessed A Civil Penalty in the Amount of $10,000 ������� 88

USDA SCHEDULES PUBLIC MEETING ON TRUST PROVISIONS OF THE PSA������������������������������� 89

Trousdale County Livestock Market Assessed a Civil Penalty in the Amount of $5,000 ���������������� 90

GIPSA Settles Two Cases Resulting in $23,000 in Civil Penalties ���������������������������������������������������� 91

GIPSA Settles Three Cases Resulting in $8,450 in Civil Penalties ���������������������������������������������������� 92

GIPSA Alleges Chiappetti Lamb & Veal and Dennis ChiappettiViolated the PSA���������������������������������� 93

GIPSA Alleges B&B Livestock Company, Inc. Violated the Packers and Stockyards Act ���������������� 94

GIPSA Alleges Apna Bazaar International, Inc., dba Ali Meat Industries Violated the PSA�������������������� 95

GIPSA Settles a Case Resulting in a $2,600 Civil Penalty ������������������������������������������������������������� 96

USDA Announces Latest Actions in the Eastern Livestock Company Failure ���������������������������������� 97

New Wilmington Livestock Auction, Inc. & Thomas R. Skelton Are Assessed a $3500 Civil Penalty ��� 99

GIPSA Settles Cases Resulting in $18,850 in Civil Penalties ����������������������������������������������������������� 100

GIPSA Alleges Michael R. Norris, dba Broken Arrow Cattle Company Violated the PSA�������������������� 102

GIPSA Alleges Eddie Bennett, dba Preferred Livestock Violated the Packers and Stockyards Ac ����� 103

GIPSA Alleges Brad Bradley, dba Farm Direct Pork Company, Violated the PSA������������������������������� 104

GIPSA Settles Cases Resulting in $9,610 in Civil Penalties ����������������������������������������������������������� 105
GIPSA News Release 2010

Page 4

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Terry Henry, 202-205-8281

Terri.L.Henry@usda.gov 

Release No.: 29-10

GIPSA Official Designation Activities

WASHINGTON, D.C. (March 31, 2010) - The U.S. Department of Agriculture’s Grain 

Inspection, Packers and Stockyards Administration (GIPSA) announces the following actions 

on designations to officially inspect and weigh grain in the specified areas of Champaign, IL; 

Emmett, MI; Davenport, IA; Enid, OK; Keokuk, IA; Marshall, MI; Omaha, NE; Amarillo, TX; 

Cairo, IL; State of Louisiana; State of North Carolina; Belmond, IA; State of New Jersey; and 

State of New York.

GIPSA has designated Champaign-Danville Grain Inspection Departments, Inc. 

(Champaign); Detroit Grain Inspection Service, Inc. (Detroit); Eastern Iowa Grain Inspection 

and Weighing Service, Inc. (Eastern Iowa); Enid Grain Inspection Company, Inc. (Enid); 

Keokuk Grain Inspection Service (Keokuk); Michigan Grain Inspection Services, Inc. 

(Michigan); and Omaha Grain Inspection Service, Inc. (Omaha) to inspect or inspect and 

weigh grain effective April 1, 2010, through March 31, 2013. For official grain inspection

services, contact Champaign at 217-398-0723, Detroit at 810-395-2105, Eastern Iowa at 

563-322-7149, Enid at 916-374-9700, Keokuk at 319-524-6482, Michigan at 269-781-2711, 

and Omaha at 402-341-6739.

GIPSA is asking for applications to provide official services in the areas of Amarillo, TX; 

Cairo, IL; State of Louisiana; State of North Carolina; Belmond, IA; State of New Jersey; 

and State of New York. Additionally, GIPSA is requesting comments on the official agencies 

presently serving these areas. Please submit applications and/or comments to GIPSA by 

April 30, 2010.

For further information contact Erik Mojica at 202-720-0414, fax 202-690-2755 or e-mail at

Erik.A.Mojica@usda.gov.
GIPSA News Release 2010

Page 5

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Terry Henry, 202-205-8281

Terri.L.Henry@usda.gov 

Release No.: 55-10

GIPSA Official Designation Activities

WASHINGTON, D.C. (May 25, 2010) - The U.S. Department of Agriculture’s Grain 

Inspection, Packers and Stockyards Administration (GIPSA) announces the following actions 

on designations to officially inspect and weigh grain in the specified areas of Columbus, OH; 

Dallas, TX; Decatur, IN; Muncie, IN; Fremont, NE; State of Maryland; and West Lafayette, IN.

GIPSA has designated East Indiana Grain Inspection, Inc. (East Indiana); Fremont Grain 

Inspection Department, Inc. (Fremont); Maryland Department of Agriculture (Maryland); and 

Titus Grain Inspection, Inc. (Titus) to inspect or inspect and weigh grain effective July 1, 

2010, through June 30, 2013. For official grain inspection services, contact East Indiana at 

765-289-1206, Fremont at 402-721-5086, Maryland at 410-721-5086, and Titus at 765-497-

2202

GIPSA is asking for applications to provide official services in the areas of Columbus, OH; 

Dallas, TX; and Decatur, IN. Additionally, GIPSA is requesting comments on the official 

agencies presently serving these areas. Please submit applications and/or comments to 

GIPSA by July 1, 2010.

For further information contact Erik Mojica at 202-720-0414, fax 202-690-2755 or e-mail at

Erik.A.Mojica@usda.gov.

Dana Stewart, 202-720-5091.
GIPSA News Release 2010

Page 6

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Terry Henry, 202-205-8281

Terri.L.Henry@usda.gov 

Release No.: 59-10

GIPSA Grain Inspection Advisory Committee to Meet

Washington, DC, June 4, 2010 - The USDA, Grain Inspection, Packers and Stockyards 

Administration’s (GIPSA) Grain Inspection Advisory Committee will meet June 16-17, 2010, 

in Kansas City, Missouri.

The Committee meeting will take place from 8:00 a.m.-4:30 p.m., June 16, 2010, and 8:00 

a.m.-noon, June 17, 2010, at the Residence Inn by Marriott, 10300 N. Ambassador Drive, 

Kansas City, Missouri 64153.

Requests to address the Committee at the meeting or written comments may be sent to: 

Administrator, GIPSA, U.S. Department of Agriculture, 1400 Independence Avenue, SW, 

STOP 3601, Washington, DC 20250-3601. Requests and comments also may also be faxed 

to (202) 690-2173.

The Advisory Committee provides advice to the Administrator of the Grain Inspection, 

Packers and Stockyards Administration with respect to the implementation of the U.S. Grain 

Standards Act (7 U.S.C. 71 et seq.). Relevant information about the Advisory Committee is 

available on the GIPSA Web site at http://www.gipsa. usda.gov. Under the section I Want To, 

select Learn about the Grain Inspection Advisory Committee.

The agenda will include updates on international affairs, wheat standards, the Yamamoto 

Sheller study, wheat functionality, and an overview of Federal Grain Inspection Service 2010 

operations.

For a copy of the agenda please contact Terri Henry, (202) 205-8281 or by e-mail 

Terri.L.Henry@usda.gov.

Public participation will be limited to written statements, unless permission is received from 

the Committee Chair to orally address the Committee. The meeting will be open to the public.

Persons with disabilities who require alternative means of communication of program 

information or related accommodations should contact Terri Henry, telephone (202) 205-8281 

or FAX (202) 690-2173..
GIPSA News Release 2010

Page 7

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Terry Henry, 202-205-8281

Terri.L.Henry@usda.gov 

Release No.: 63-10

GIPSA Official Designation Activities

WASHINGTON, D.C. (June 25, 2010) - The U.S. Department of Agriculture’s Grain 

Inspection, Packers and Stockyards Administration (GIPSA) announced the following actions 

on designations to officially inspect and weigh grain in specified areas of Amarillo, TX; Cairo, 

IL; and the State of North Carolina.

GIPSA is asking for applications to provide official services in the areas of Amarillo, TX; 

Cairo, IL; and State of North Carolina. Please submit applications and/or comments to GIPSA

by July 31, 2019.

For further information contact Erik Mojica at 202-720-0414, fax 202-690-2755 or e-mail at

Erik.A.Mojica@usda.gov.

Dana Stewart

202-720-5091.
GIPSA News Release 2010

Page 8

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Terry Henry, 202-205-8281

Terri.L.Henry@usda.gov 

Release No.: 72-10

GIPSA Official Designation Activities

Washington, DC (August 30, 2010) - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) announces the following actions on 

designations to officially inspect and weigh grain in the specified areas of Amarillo, TX; Cairo, 

IL; the State of Louisiana; the State of North Carolina; Belmond, IA; the State of New Jersey; 

and the State of New York.

GIPSA has designated Amarillo Grain Exchange, Inc. (Amarillo); Cairo Grain Inspection 

Agency, Inc. (Cairo); Louisiana Department of Agriculture and Forestry (Louisiana); North 

Carolina Department of Agriculture (North Carolina); and D. R. Schaal Agency, Inc. (Schaal) 

to inspect or inspect and weigh grain effective October 1, 2010, through September 30, 2013. 

For official grain inspection services, contact Amarillo at 806-372-2152, Cairo at 618-734-

1316, Louisiana at 318-428-5453, North Carolina at 919-733-4491, and Schaal at 641-444-

7292

GIPSA is asking for applications to provide official services in the areas of Owensboro, 

KY; Bloomington, IL; Iowa Falls, IA; Casa Grande, AZ; Fargo, ND; Grand Forks, ND; and 

Plainview, TX. Additionally, GIPSA is requesting comments on the official agencies presently 

serving these areas. Please submit applications and/or comments to GIPSA by September 

30, 2010.

For further information contact Erik Mojica at 202-720-0414, fax 202-690-2755 or e-mail at

Erik.A.Mojica@usda.gov.

Dana Stewart, 202-720-5091
GIPSA News Release 2010

Page 9

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Terry Henry, 202-205-8281

Terri.L.Henry@usda.gov 

Release No.: 78-10

GIPSA Seeks Comments on Corn Standards

WASHINGTON, September 29, 2010 - The UDSA Grain Inspection, Packers and Stockyards 

Administration (GIPSA) is seeking public comment on the need for revisions to the U.S. 

standards for corn.

GIPSA is soliciting comments as part of the Agency’s comprehensive review of the 

standards, which were last amended in 1996. Through this review, GIPSA is seeking to 

ensure that the standards remain relevant to the U.S. and global corn industry and continue 

to facilitate the marketing of U.S. corn. All aspects of the corn standards are being reviewed, 

including definitions, grade and non-grade determining factors, grade limits, damages, as 

well as grading procedures and new services GIPSA might offer.

“Since the standards were last revised, the use of corn for ethanol and the number of 

different varieties of corn has increased tremendously,” said GIPSA administrator J. Dudley 

Butler. “To ensure that standards and official grading practices remain relevant, GIPSA invites 

interested parties to comment on whether the current corn standards and grading procedures 

need to be changed.”

GIPSA establishes standards for corn, and other grains, under authority of the U.S. Grain 

Standards Act. The standards facilitate corn marketing and define U.S. corn quality in the 

domestic and global marketplace by defining commonly used industry terms and outlining 

basic procedures for testing corn. Together, the grading standards and procedures allow 

buyers and sellers to communicate quality requirements, compare corn quality using 

equivalent forms of measurement, and assist in price discovery.

The advance notice of proposed rulemaking seeking public comment on the corn standards 

was published in the September 17, 2010, Federal Register. Comments must be received on 

or before December 16, 2010.

For further information, contact Ross Heiman, GIPSA, at (816) 823-2580.

Dana Stewart 202-720-5091 Dana.B.Stewart@usda.gov.
GIPSA News Release 2010

Page 10

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Terry Henry, 202-205-8281

Terri.L.Henry@usda.gov 

Release No.: 89-10

GIPSA’s Grain Inspection Advisory Committee to Meet

Washington, DC, November 3, 2010 - The USDA, Grain Inspection, Packers and Stockyards 

Administration’s Grain Inspection Advisory Committee will meet November 17-18, 2010, in 

New Orleans, Louisiana.

The Committee meeting will take place from 8:00 a.m.- 4:30 p.m., November 17, 2010, and 

8:00 a.m.- 4:30 p.m., November 18, 2010, at the Chateau Bourbon, 800 Iberville Street, New 

Orleans, Louisiana 70112.

Requests to address the Committee at the meeting or written comments may be sent to: 

Administrator, GIPSA, U.S. Department of Agriculture, 1400 Independence Avenue, SW., 

STOP 3601, Washington, DC 20250-3601. Requests and comments may also be faxed to 

(202) 690-2173.

The purpose of the Advisory Committee is to provide advice to the Administrator of the Grain 

Inspection, Packers and Stockyards Administration with respect to the implementation of 

the U.S. Grain Standards Act (7 U.S.C. 71 et seq.). Relevant information about the Advisory 

Committee is available on the GIPSA Web site at http://archive.gipsa.usda.gov. Under the 

section I Want To, select ‘Learn about the Grain Inspection Advisory Committee.’

The agenda will include updates on international affairs, reviews of export and domestic 

corn grading, the National Grain Center, sorghum odor, the Yamamoto Sheller Study, and an 

overview of Federal Grain Inspection Service operations.

For a copy of the agenda please contact Terri Henry, (202) 205-8281 or by e-mail 

Terri.L.Henry@usda.gov.

Public participation will be limited to written statements, unless permission is received from 

the Committee Chair to orally address the Committee. The meeting will be open to the public.

Persons with disabilities who require alternative means of communication of program 

information or related accommodations should contact Terri Henry, telephone (202) 205-8281 

or FAX (202) 690-2173..
GIPSA News Release 2010

Page 11

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 01-10

GIPSA Alleges Barnesville Livestock, LLC and Darryl Watson Misused Their Custodial Account

WASHINGTON, Jan. 14, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Barnesville 

Livestock, LLC (Barnesville), Barnesville, Ohio and Darryl Watson (Watson), Norwich, Ohio:

• failed to properly use and maintain its custodial account;

• failed to deposit into the custodial account an amount equal to the proceeds receivable 

from the sale of consigned livestock, causing in part, the shortages in its custodial account;

• failed to remit, when due, the net proceeds due from the sale price of livestock on a 

commission basis;

• deposited custodial account funds to the market’s general account;

• deposited proceeds from the sale of livestock on a commission basis into an account other 

than the market’s custodial account; and

• issued custodial checks without having sufficient funds to cover checks.

GIPSA filed a complaint against Barnesville and Watson on December 10, 2009. If the 

allegations are admitted, or proven in an oral hearing, Barnesville and Watson may 

be ordered to cease and desist from violating the Packers and Stockyards (P&S) Act, 

suspended, and assessed a civil penalty.

Barnesville engaged in the business of conducting and operating a posted stockyard; a 

market agency selling consigned livestock in commerce on a commission basis at the 

stockyard; and is registered with the Secretary of Agriculture as a market agency to sell 

livestock in commerce on a commission basis and as a market agency buying livestock on 

commission.

Watson is the sole owner of Barnesville, is responsible for the day-to-day direction, 

management and control of Barnesville, and is a market agency subject to 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..
GIPSA News Release 2010

Page 12

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 02-10

GIPSA Alleges Terry Roth, dba Indian Creek Meadows Violated the Packers and Stockyards Act

WASHINGTON, Jan. 14, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Terry Roth (Roth), 

Millersville, Missouri, doing business as Indian Creek Meadows failed to pay sellers for the 

sale of their livestock within the time period required by the Packers and Stockyards (P&S) 

Act.

GIPSA filed a complaint against Roth on December 23, 2009. If the allegations are admitted, 

or proven in an oral hearing, Roth may be ordered to cease and desist from violating the P&S 

Act, suspended, and assessed a civil penalty.

Roth engaged in the business of buying and selling livestock in commerce for his own 

account as a dealer; he is 100 percent owner of Indian Creek Meadows; and is registered 

with the Secretary of Agriculture as a dealer to buy and sell livestock in commerce for his own 

account.

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.
GIPSA News Release 2010

Page 13

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 03-10

GIPSA Alleges Kao Vang and Chue Thao, dba California Fresh Meats Violated the Packers and

Stockyards Act

WASHINGTON, Jan. 14, 2010 -The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Kao Vang (Vang) 

and Chue Thao (Thao), doing business as California Fresh Meats, Fresno, California, 

engaged in the business of a dealer buying and selling livestock in commerce without 

maintaining an adequate bond.

GIPSA filed a complaint against Vang and Thao on December 20, 2009. If the allegations are 

admitted, or proven in an oral hearing, Vang and Thao may be ordered to cease and desist 

from violating the P&S Act, suspended, and assessed a civil penalty.

Vang and Thao engaged in the business of buying and selling livestock in commerce as a 

dealer for their own account; are not registered with the Secretary of Agriculture as a dealer; 

and operated as a dealer within the jurisdiction of the Secretary.

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..
GIPSA News Release 2010

Page 14

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 04-10

GIPSA Alleges Curtis Walton, dba Walton Livestock Violated the Packers and Stockyards Act

WASHINGTON, Jan. 14, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Curtis Walton 

(Walton), doing business as Walton Livestock, Lamar, Indiana:

• failed to maintain a bond and registration while continuing to operate his business after 

notification from GIPSA;

• failed to keep records that fully and correctly disclosed all transactions involved in his 

business; and

• marked up the purchase price of livestock and charged commission on the same livestock 

obtaining both a dealer profit and a commission fee as a market agency buying on 

commission for the same livestock in the same transactions.

GIPSA filed a complaint against Walton December 23, 2009..If the allegations are admitted, 

or proven in an oral hearing, Walton may be ordered to cease and desist from violating the 

P&S Act, suspended, and assessed a civil penalty.

Walton engaged in the business of a dealer buying and selling livestock in commerce for his 

own account and for the account of others and as a market agency buying livestock on a 

commission basis.

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..
GIPSA News Release 2010

Page 15

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 05-10

GIPSA Settles Two Cases Resulting in $5,150 in Civil Penalties

WASHINGTON, Jan. 14, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled two cases resulting in $5,150 in civil penalties.

Randy Deaton, London, Kentucky, waived his right to a hearing, entered into a stipulation 

agreement, and paid a penalty of $1,150 after GIPSA found that he failed to pay, when due, 

for livestock purchases.

KRLM, LLC, dba Knoxville Regional Livestock Market, Knoxville, Iowa, waived its right to 

a hearing, entered into a stipulation agreement, and paid a penalty of $4,000 after GIPSA

found that it had custodial account shortages, misused custodial account funds, and operated 

while insolvent.

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.
GIPSA News Release 2010

Page 16

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 06-10

Potter Sausage Co. is Assessed A Civil Penalty in the Amount of $10,000

WASHINGTON, Jan. 28, 2010 - On January 13, 2010, the U.S. Department of Agriculture’s 

Grain Inspection, Packers and Stockyards Administration (GIPSA) entered into a decision 

without hearing by reason of consent with Potter Sausage Co., Durant, Oklahoma.

Potter Sausage Co. has been ordered to cease and desist from:

• failing to pay the full purchase price of livestock within the time period required by the 

Packers and Stockyards (P&S) Act; and

• engaging in any livestock purchase arrangement where payment is to be made in a 

manner other than as required by the P&S Act without first obtaining a written credit 

agreement with a trust waiver as specified in the regulations.

Potter Sausage Co. has been assessed a civil penalty in the amount of $10,000.

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..
GIPSA News Release 2010

Page 17

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 07-10

GIPSA Alleges Gailal Sbeta and Mohammed Mesallem, dba Islamic Meat and Poultry Violated the

Packers and Stockyards Act

WASHINGTON, Feb. 4, 2010- The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Gailal Sbeta 

(Sbeta) and Mohammed Messallem (Messallem), doing business as Islamic Meat and 

Poultry, Stockton, California, failed to pay for livestock purchases within the time period 

required by the Packers and Stockyards (P&S) Act.

GIPSA filed a complaint against Sbeta and Messallem on January 22, 2010. If the allegations 

are admitted, or proven in an oral hearing, Sbeta, Messallem, and Islamic Meat and Poultry 

may be ordered to cease and desist from violating the P&S Act and assessed a civil penalty.

Sbeta, Mesallem and Islamic Meat and Poultry engaged in the business of buying livestock 

in commerce for slaughter; manufacture or prepare meat and meat food products for sale or 

shipment in commerce; and are packers subject to 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..
GIPSA News Release 2010

Page 18

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 08-10

GIPSA Alleges Eugene Thompson Violated the Packers and Stockyards Act

WASHINGTON, Feb. 4, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Eugene Thompson 

(Thompson):

• failed to pay the full amount of the purchase price for livestock within the time period 

required by the Packers and Stockyards (P&S) Act;

• failed to maintain an adequate bond; and

• issued checks without having sufficient funds to cover checks.

GIPSA filed a complaint against Thompson on January 21, 2010. If the allegations are 

admitted, or proven in an oral hearing, Thompson may be ordered to cease and desist from 

violating the P&S Act, suspended, and assessed a civil penalty.

Thompson engaged in the business of buying and selling livestock in commerce for his own 

account and for the account of others and is registered with the Secretary of Agriculture as 

a dealer to buy and sell livestock in commerce for his own account and as a market agency 

buying on commission.

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..
GIPSA News Release 2010

Page 19

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 11-10

GIPSA Amends Registration Requirements for Market Agencies and Dealers

WASHINGTON, (Feb. 9, 2010)-The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has amended regulations that require 

market agencies and dealers to register with the Agency under the Packers and Stockyards 

Act. Under the new regulations, market agencies and dealers must still register with GIPSA

upon commencing operations, but now those registrations will automatically renew annually, 

coinciding with the timely filing of the entity’s required annual report.

Previously, once an entity registered with GIPSA, the registration did not expire or require 

renewals and was effective indefinitely, unless the registrant notified GIPSA that the business 

ceased operations.

If a market agency or dealer fails to file the required annual report by its due date, GIPSA

will issue a default notice, which could lead to the expiration of the entity’s registration. 

Registrations that expire because the required annual report is not filed within the time 

period allowed will be required to file a new application for registration in order to continue in 

business.

According to GIPSA administrator J. Dudley Butler, this action will allow GIPSA to maintain 

accurate records of entities operating subject to the P&S Act without imposing new and 

additional burdens on registrants, and to more effectively enforce the P&S Act.

This rule becomes effective on March 11, 2010.

For further information, contact Brett Offutt, Director, Policy and Litigation Division, P&SP, at 

(202) 720- 7363 or via email to s.brett.offutt@usda.gov..

Dana Stewart, 202-720-5091
GIPSA News Release 2010

Page 20

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 09-10

David DeStafino, dba D&D Stockhauling is Suspended as a Dealer

WASHINGTON, Feb. 18, 2010 - On January 27, 2010, the U.S. Department of Agriculture’s 

Grain Inspection, Packers and Stockyards Administration (GIPSA) entered into a decision 

without hearing by reason of consent with David DeStafino (Destafino), doing business as 

D&D Stockhauling, Cullman, Alabama.

DeStafino has been ordered to cease and desist from:

• failing to pay the full purchase price of livestock within the time period required by the 

Packers and Stockyards (P&S) Act;

• failing to pay the full purchase price for livestock; and

• issuing checks for livestock purchases without having sufficient funds to cover checks.

DeStafino has been suspended for a period of 5 years. DeStafino is prohibited from operating 

as a dealer, buying and selling livestock in commerce for his own account.

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..
GIPSA News Release 2010

Page 21

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 10-10

GIPSA Settles Three Cases Resulting in $5,500 in Civil Penalties

WASHINGTON, Feb. 18, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled three cases resulting in $5,500 in civil penalties.

Windy Ridge Pork, LLC, Pipestone, Minnesota, waived its right to a hearing, entered into 

a stipulation agreement, and paid a penalty of $1,500 after GIPSA found that it failed to 

disclose right to cancel and additional capital investment, and failed to include proper choice 

of law and venue in production contract.

North Star Family Farms, LLP, Pipestone, Minnesota, waived its right to a hearing, entered 

into a stipulation agreement, and paid a penalty of $1,500 after GIPSA found that two swine 

production contracts did not clearly disclose the grower/finisher’s right to cancel; the method 

by which the grower may cancel the contract; the deadline for cancelling the contract; and an 

‘Additional Capital Investments Disclosure Statement. ‘

Gene Isom, waived his right to a hearing, entered into a stipulation agreement, and paid a 

penalty of $2,500 after GIPSA found that he operated as a livestock dealer without filing the 

required bond coverage.

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..
GIPSA News Release 2010

Page 22

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 12-10

GIPSA Alleges Empire Kosher Poultry, Inc. Violated the Packers and Stockyards Act

WASHINGTON, Feb. 25, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Empire Kosher 

Poultry, Inc. (Empire), Harrisburg, Pennsylvania:

• failed to pay within the time period required by the Packers and Stockyards (P&S) Act 

for turkeys purchased, received and accepted from Koch’s Turkey Farm, Tamaqua, 

Pennsylvania;

• as of October 7, 2008, Empire had failed to pay Koch’s Turkey Farm $296,884 in 

connection with the turkey purchases;

• Empire rejected a proposal from Koch’s Turkey Farm for a 14-day credit period for 

payment;

• on September 26, 2008, Empire negotiated an extended payment plan with Koch’s Turkey 

Farm.

GIPSA filed a complaint against Empire on February 4, 2010. If the allegations are admitted, 

or proven in an oral hearing, Empire may be ordered to cease and desist from violating the 

P&S Act, suspended, and assessed a civil penalty.

Empire engaged in the business of obtaining live poultry by purchase or under poultry 

growing arrangement for the purpose of slaughter, ships processed poultry products in 

commerce; and operates as a live poultry dealer subject to the provisions 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..
GIPSA News Release 2010

Page 23

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 13-10

GIPSA Settles Five Cases Resulting in $7,650 in Civil Penalties

WASHINGTON, Mar. 04, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled five cases resulting in $7,650 in civil penalties.

Rodney J. Wright, dba Wright Livestock, Inc., North Platte, Nebraska, waived his right to a 

hearing, entered into a stipulation agreement, and paid a penalty of $875 after GIPSA found 

that he failed to pay, when due, for livestock.

Leslie Guy Casteel, Newell, South Dakota, waived his right to a hearing, entered into a 

stipulation agreement, and paid a penalty of $1,125 after GIPSA found that he failed to pay, 

when due, for livestock.

Terry Blair, Terry Blair Livestock and Horse Sales, Alexandria, Tennessee, waived his right 

to a hearing, entered into a stipulation agreement, and paid a penalty of $1,500 after GIPSA

found that he failed to pay, when due, for livestock purchases.

Richard S. Hunter, dba H&H Farms, Baileyton, Alabama, waived his right to a hearing, 

entered into a stipulation agreement, and paid a penalty of $3,400 after GIPSA found that he 

failed to pay, when due, for livestock.

Herman Schumacher, Herreid, South Dakota, waived his right to a hearing, entered into a 

stipulation agreement, and paid a penalty of $750 after GIPSA found that he failed to pay, 

when due, for livestock.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries.
GIPSA News Release 2010

Page 24

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 16-10

GIPSA Alleges John Morrell & Co. Violated the Packers and Stockyards Act

WASHINGTON, Mar. 11, 2010- The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that John Morrell 

(Morrell) & Co., Cincinnati, Ohio:

• When a lean percent was not recorded, Morrell substituted a lean percentage other than 

the average lean percent of the carcasses in the same lot in calculating the amounts to be 

paid for these carcasses; and

• Provided inaccurate and false accountings to the sellers of hogs.

GIPSA filed a complaint against Morrell on February 25, 2010. If the allegations are admitted, 

or proven in an oral hearing, Morrell may be ordered to cease and desist from violating the 

Packers and Stockyards (P&S) Act and assessed a civil penalty.

Morrell was engaged in the business of purchasing livestock in commerce for the purpose 

of slaughter and of manufacturing or preparing meats or meat food products for sale or 

shipment in commerce and is a packer.

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..
GIPSA News Release 2010

Page 25

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 22-10

Terry Livestock, Inc., is Assessed a Civil Penalty in the Amount of $13,200

WASHINGTON, Mar. 18, 2010 - On May 5, 2009, the U.S. Department of Agriculture’s Grain 

Inspection, Packers and Stockyards Administration issued a default decision against Terry 

Livestock, Inc., Hargill, Texas.

Terry Livestock, Inc. has been ordered to cease and desist from engaging in business in any 

capacity for which bonding is required under the Packers and Stockyards (P&S) Act without 

filing and maintaining an adequate bond.

Terry Livestock, Inc. has also been assessed a civil penalty in the amount of $13,200.

On July 14, 2009, Terry Livestock, Inc. filed an appeal petition with the Hearing Clerk which 

was denied.

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..
GIPSA News Release 2010

Page 26

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 17-10

GIPSA Settles Two Cases Resulting in $5,250 in Civil Penalties

WASHINGTON, Mar. 18, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled two cases resulting in $5,250 in civil penalties.

Mike K. Street, Roan Mountain Tennessee, waived his right to a hearing, entered into a 

stipulation agreement, and paid a penalty of $2,250 after GIPSA found that he failed to pay, 

when due, for livestock.

Taylor Bang, Killdeer, North Dakota, waived his right to a hearing, entered into a stipulation 

agreement, and paid a penalty of $3,000 after GIPSA found that he failed to transfer original 

weights.

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..
GIPSA News Release 2010

Page 27

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 19-10

GIPSA Alleges John Lundgren Violated the Packers and Stockyards Act

WASHINGTON, March 18, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that John Lundgren 

(Lundgren):

• failed to pay the full purchase price for livestock within the time period required by the 

Packers and Stockyards (P&S) Act; and

• issued checks for livestock purchases without having sufficient funds to cover checks.

GIPSA filed a complaint against Lundgren on March 3, 2010. If the allegations are admitted, 

or proven in an oral hearing, Lundgren may be ordered to cease and desist from violating the 

Packers and Stockyards (P&S)

Act, suspended, and assessed a civil penalty.

Lundgren was engaged in the business of buying and selling livestock in commerce for his 

own account as a dealer and is registered with the Secretary of Agriculture.

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..
GIPSA News Release 2010

Page 28

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 21-10

Townsend Farms of Arkansas, Inc. Pays $48,000 Penalty To Settle USDA Complaint

WASHINGTON, Mar. 22, 2010 - On March 5, 2010, the U.S. Department of Agriculture’s 

Grain Inspection, Packers and Stockyards Administration (GIPSA) and Townsend Farms 

of Arkansas, Inc. (Townsend), of Batesville, Arkansas, settled an administrative complaint 

filed against Townsend in June of last year. The complaint and subsequent consent decision 

follow a GIPSA investigation in which GIPSA found evidence that Townsend Farms agreed 

to certain payment terms with poultry growers, but failed to follow through on that agreement 

with 32 of the 33 growers.

Following GIPSA’s investigation, Townsend made payments to the 32 affected poultry 

growers totaling approximately $114,000. As part of the consent decision, Townsend Farms 

paid an additional sum of $48,000 as a civil penalty and has been ordered to cease and 

desist from failing to pay, when due, for live poultry obtained under any type of poultry 

growing arrangement before the close of the fifteenth day following the week in which the 

poultry is slaughtered. 

“When growers don’t get paid the money they are due, they are unable to make their 

mortgage payments and ultimately could lose their farms,” according to GIPSA Administrator, 

J. Dudley Butler. “Life in rural America can be challenging. It is imperative that everyone plays 

by the rules.”

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries. GIPSA is committed to helping rural America prosper through enforcement of the 

Packers and Stockyards Act..
GIPSA News Release 2010

Page 29

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 24-10

Noah’s Ark Processors Corp. aka Noah’s Processors, LLC Is Assessed a Civil Penalty in the

Amount of $4,500

Washington, Mar. 25, 2010 - On March 9, 2010, the U.S. Department of Agriculture’s Grain 

Inspection, Packers and Stockyards Administration (GIPSA) entered into a consent decision 

with Noah’s Ark Processors Corp. also known as Noah’s Ark Processors, LLC (Noah’s Ark), 

Dawson, Minnesota.

Noah’s Ark was assessed a civil penalty in the amount of $4,500 which has now been paid.

This decision resolves a complaint that was filed on December 3, 2009, in which GIPSA

alleged that Noah’s Ark purchased livestock in commerce for the purpose of slaughter and or 

manufacturing or preparing meats or meat food products for sale or shipment in commerce 

without maintaining an adequate bond.

As of the date of this decision, Noah’s Ark now maintains a $95,000 bond.

The Packers and Stockyards Act is a fair trade practice and payment protection law that.
GIPSA News Release 2010

Page 30

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 23-10

GIPSA Settles a Case Resulting in a $2,375 Civil Penalty

Washington, Mar. 25, 2010 - The U.S. Department of Agriculture’s Grain Inspection, Packers 

and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism to quickly 

resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an alleged 

violator the option of waiving their right to a hearing and entering into a stipulation agreement 

to quickly resolve alleged violations.

GIPSA recently settled a case resulting in a $2,375 civil penalty.

Todd Fortner, dba F&F Farms & Cattle, Inc., Kite, Georgia, waived his right to a hearing, 

entered into a stipulation agreement, and paid a penalty of $2,375 after GIPSA found that he 

failed to pay for livestock when due.

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..
GIPSA News Release 2010

Page 31

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 26-10

Tracy Carter Has Been Suspended By USDA

WASHINGTON, Apr. 1, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration issued a decision without hearing by reason of 

default, which became final on March 2, 2010, against Tracy Carter (Carter), Bowling Green, 

Kentucky.

Carter has been ordered to cease and desist from operating without first obtaining a bond as 

required by the Packers and Stockyards (P&S) Act.

Carter is suspended as a registrant for 30 days.

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..
GIPSA News Release 2010

Page 32

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 25-10

GIPSA Settles Cases Resulting in $5,875 in Civil Penalties

WASHINGTON, Apr. 1, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled three cases resulting in $5,875 in civil penalties.

Leanin B, LLC, Janet Lenz, Sac City, Iowa, waived her right to a hearing, entered into a 

stipulation agreement, and paid a penalty of $2,000 after GIPSA found that she failed to pay 

for livestock within the time period required by the P&S Act.

Arnold Kuhn, dba Cloverleaf Cattle Company, Mandan, North Dakota, waived his right to 

a hearing, entered into a stipulation agreement, and paid a penalty of $2,625 after GIPSA

found that he failed to pay for livestock when due.

Richard C. Mercer, LaVeen, Arizona, waived his right to a hearing, entered into a stipulation 

agreement, and paid a penalty of $1,250 after GIPSA found that he failed to pay for livestock 

when due.

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.
GIPSA News Release 2010

Page 33

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 28-10

USDA Publishes Swine Contract Library Final Rule

WASHINGTON, Apr. 5, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) published a final rule re-establishing the 

regulatory authority for the Swine Contract Library’s continued operation. The rule also 

incorporates certain changes contained within the Reauthorization Act that impact the library, 

and makes other changes to enhance the library’s overall effectiveness and efficiency in 

response to input from regulated entities and the public.

USDA also requested a 3-year extension of and revision to to the currently approved 

information collection in support of the reporting and recordkeeping requirements for the 

Swine Contract Library program. This approval is required under the Paperwork Reduction 

Act.

On August 11, 2003, GIPSA implemented new Subtitle B of Title II of the P&S Act, which was 

added by the Livestock Mandatory Reporting Act of 1999 (1999 Act), and established the 

Swine Contract Library. The statutory authority for the library lapsed on September 30, 2005. 

On October 5, 2006, the Livestock Mandatory Reporting Reauthorization Act reauthorized the 

1999 Act until September 30, 2010, and also amended the swine reporting requirements of 

the 1999 Act.

GIPSA published a Notice of Proposed Rulemaking in the Federal Register on October 26, 

2009 (74 FR 54928), and invited interested parties to comment on the re-authorization of 

the Swine Contract Library regulations. GIPSA received no comments on the proposed rule 

during the comment period that ended on December 28, 2009.

The Final Rule was published in the April 2 Federal Register. Additional information is 

available in GIPSA’s Federal Register notice at archive.gipsa.usda.gov.

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..
GIPSA News Release 2010

Page 34

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 27-10

GIPSA Settles a Case Resulting in a $1,500 Civil Penalty

WASHINGTON, Apr. 8, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled a case resulting in a $1,500 civil penalty.

United Producers, Inc., Columbus, Ohio, waived its right to a hearing, entered into a 

stipulation agreement, and paid a penalty of $1,500 after GIPSA found that their swine 

production contract did not disclose the grower’s right to cancel the contract, including the 

method and deadline for cancellation; or contain an Additional Capital Investments Disclosure 

Statement.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 35

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 30-10

GIPSA Alleges Duane A. Schmidt Violated the Packers and Stockyards Act

WASHINGTON, Apr. 14, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) has found evidence that Duane A. Schmidt 

(Schmidt) failed to pay for livestock purchases within the time period required by the Packers 

and Stockyards (P&S) Act.

GIPSA filed a complaint against Schmidt on April 2, 2010. If the allegations are admitted, or 

proven in an oral hearing, he may be ordered to cease and desist from violating the P&S Act, 

suspended, and assessed a civil penalty.

Schmidt engaged in the business of buying and selling livestock in commerce for his own 

account as a dealer; and is registered with the Secretary of Agriculture as a dealer to buy 

and sell livestock in commerce for his own account, and as a market agency buying on 

commission.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 36

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 40-10

GIPSA Settles a Case Resulting in a $500 Civil Penalty

WASHINGTON, Apr. 22, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled a case resulting in a $500 civil penalty.

Jed Peterson, Jed Peterson Holsteins, Inc., Brush, Colorado, waived his right to a hearing, 

entered into a stipulation agreement, and paid a penalty of $500 after GIPSA found that he 

failed to pay when due, for livestock.

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..
GIPSA News Release 2010

Page 37

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 36-10

GIPSA Alleges Tallgrass Beef Company, LLC Violated the Packers and Stockyards Act

WASHINGTON, Apr. 22, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Tallgrass Beef 

Company, LLC, (Tallgrass), Sedan, Kansas:

• failed to pay in a timely manner the full purchase price owed for livestock purchases;

• failed to pay, as of November 30, 2009, a total of $1,595,039.81 for livestock purchases;

• operated without a bond; and

• had current liabilities in excess of current assets on November 30, 2009, and was 

therefore insolvent on that date.

GIPSA filed a complaint against Tallgrass on April 7, 2010. If the allegations are admitted, or 

proven in an oral hearing, Tallgrass may be ordered to cease and desist from violating the 

P&S Act and assessed a civil penalty.

Tallgrass is engaged in the business of buying livestock in commerce for the purpose of 

slaughter and after the custom slaughter and processing of the livestock, of marketing meats, 

meat food products, or livestock products in an unmanufactured form acting as a wholesale 

distributor in commerce, and is a packer subject to the provisions of the Packers and 

Stockyards (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..
GIPSA News Release 2010

Page 38

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 39-10

GIPSA Alleges Gulf Packing Company, LP and Charles L. Booth Violated the Packers and

Stockyards Act

WASHINGTON, Apr. 22, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Gulf Packing 

Company, LP (Gulf Packing), San Benito, Texas, and Charles L. Booth (Booth):

• purchased livestock and did not pay the full purchase price to the seller, Haw Shoe Farms;

• purchased livestock and made deductions to invoices issued by the seller after the 

transaction had been completed; and

• purchased livestock and failed to pay for livestock purchases in a timely manner.

GIPSA filed a complaint against Gulf Packing and Booth on April 14, 2010. If the allegations 

are admitted, or proven in an oral hearing, Gulf Packing and Booth may be ordered to cease 

and desist from violating the P&S Act and assessed a civil penalty.

Gulf Packing engaged in the business of buying livestock in commerce for the purposes of 

slaughter; slaughtering cattle and manufacturing or preparing meat or meat food products for 

sale or shipment in commerce; and is a packer.

Booth is president, managing partner, 60% shareholder of Gulf Packing, a packer, and 

responsible for the day-to-day direction, management and control of Gulf Packing.

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..
GIPSA News Release 2010

Page 39

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 33-10

GIPSA Alleges George Gonzalez Violated the Packers and Stockyards Act

WASHINGTON, Apr. 22, 2010 0- The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that George Gonzalez 

(Gonzalez), Donna, Texas, as of the date of the filing of this complaint, is operating as a 

market agency buying on commission without a bond or bond equivalent, and Packers and 

Stockyards Program has not received an application for registration or bond coverage.

GIPSA filed the complaint against Gonzalez on April 9, 2010. If the allegations are admitted, 

or proven in an oral hearing, Gonzalez may be ordered to cease and desist from violating the 

Packers and Stockyards (P&S) Act, suspended, 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..
GIPSA News Release 2010

Page 40

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 35-10

Farmers Livestock, Inc., dba Springlake Stockyard to Pay Fine For Not Filing Reports with USDA

WASHINGTON, Apr. 22, 2010 - Farmers Livestock, Inc., doing business as Springlake 

Stockyard, has been ordered to pay a $2,500 civil penalty for not filing, on time, required 

annual reports with the Packers and Stockyards Program of USDA. The United States 

Attorney’s Office for the Western District of Virginia handled this case on behalf of USDA and 

negotiated a Settlement Agreement with Farmers Livestock, Inc.

All meat packers, live poultry dealers, market agencies and livestock dealers operating 

under the jurisdiction of the Packers and Stockyards (P&S) Act of 1921 are required by 

federal regulation to file reports annually. These reports provide critical information that 

Grain Inspection, Packers and Stockyards Administration (GIPSA) uses to ensure farmers 

and ranchers are financially protected when they sell their livestock. Farmers Livestock is 

registered with the Secretary of Agriculture to operate as a market agency.

Their 2006 annual report, which was due on April 15, 2007, was not filed until June 11, 2009. 

Penalties for not filing the GIPSA annual report are set by law at $110 per day for every day 

the report is late. Farmers Livestock face a full penalty of $81,070 for filing their report 737 

days late.

Their 2007 annual report, which was due on April 15, 2008, was not filed until June 11, 

2009, 370 days late. Farmers Livestock face a full penalty of $40,700. Under the terms of 

the Settlement Agreement, however, Farmers Livestock will pay $2,500 within six months of 

November 4, 2009.

If Farmers Livestock fails to timely file the required Annual Report of Market Agency for 2009, 

2010, and 2011, or fail to pay $2,500, they will have defaulted on the settlement and will 

immediately forfeit an additional $7,000 to the United States without further procedure.

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..
GIPSA News Release 2010

Page 41

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 44-10

GIPSA Settles Cases Resulting in $4,100 in Civil Penalties

WASHINGTON, Apr. 29, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled cases resulting in $4,100 in civil penalties.

Brian Gader, doing business as Gader Cattle Company, Napoleon, North Dakota, waived his 

right to a hearing, entered into a stipulation agreement, and paid a penalty of $1,500 after 

GIPSA found that he failed to pay within the time period required by the P&S Act for livestock.

John F. Loomis, H&L Cattle Co., Inc., Mondovi, Wisconsin, waived his right to a hearing, 

entered into a stipulation agreement, and paid a penalty of $2,600 after GIPSA found that he 

failed to pay when due for livestock.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 42

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 32-10

GIPSA Alleges New Wilmington Livestock Auction, Inc. and Thomas R. Skelton Violated the

Packers and Stockyards Act

WASHINGTON, Apr. 29, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that New Wilmington 

Livestock Auction, Inc. (New Wilmington) and Thomas R. Skelton (Skelton), Canfield, Ohio:

• failed to have their scales tested at six-month intervals and did not furnish a copy of the 

report to the regional director in the Midwestern Regional Office since October 18, 2006; 

and

• sold livestock in commerce on a commission basis using a scale that had not been tested 

in accordance with 9 C.F.R. § 201.72.

GIPSA filed a complaint against New Wilmington and Skelton on April 15, 2010. If the 

allegations are admitted, or proven in an oral hearing, New Wilmington and Skelton may be 

ordered to cease and desist from violating the P&S Act, suspended, and assessed a civil 

penalty.

New Wilmington engaged in the business of conducting and operating a posted stockyard; 

is a market agency selling livestock in commerce on a commission basis; and is registered 

with the Secretary of Agriculture as a market agency to sell livestock in commerce on a 

commission basis.

Skelton is president and 100% shareholder of New Wilmington and responsible for the dayto-day direction, management and control of New Wilmington.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 43

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 31-10

GIPSA Alleges Lonnie & Karen Martin Violated the Packers and Stockyards Act

WASHINGTON, Apr. 29, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Lonnie and Karen 

Martin (the Martins), East Earl, Pennsylvania:

• failed to pay for livestock purchases within the time period required by the Packers and 

Stockyards (P&S) Act;

• bought livestock in commerce without maintaining an adequate bond;

• issued checks in payment for livestock purchases without maintaining sufficient funds to 

cover payment; and

• as of the date of the filing of this complaint, owes payment to four sellers in the amount of 

$236,946.02.

GIPSA filed a complaint against the Martins on April 15, 2010. If the allegations are admitted, 

or proven in an oral hearing, they may be ordered to cease and desist from violating the P&S 

Act and assessed a civil penalty.

The Martins engaged in the business of buying livestock in commerce for the purpose of 

slaughter, slaughtering hogs and manufacturing or preparing meat or meat products for sale 

or shipment in commerce; and a packer subject to the P&S Act.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 44

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 18-10

James Bailey, dba B&B Farms, LLC is Assessed a $11,000 Civil Penalty

WASHINGTON, May 6, 2010- On April 20, 2010, the U.S. Department of Agriculture’s Grain 

Inspection, Packers and Stockyards Administration issued a default decision against James 

Bailey (Bailey), doing business as B&B Farms, LLC, Mineral Bluff, Georgia.

Bailey has been ordered to cease and desist from:

• issuing checks for livestock purchases without having sufficient funds on deposit to pay for 

said purchases; and

• failing to pay the full purchase price for livestock within the time period required by the 

Packers and Stockyards (P&S) Act.

Bailey is suspended as a registrant for a period of five years and is assessed a civil penalty 

in the amount of $11,000.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 45

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 46-10

GIPSA Settles Cases Resulting in $6,000 in Civil Penalties

WASHINGTON, May 6, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled cases resulting in $6,000 in civil penalties.

Leo Heinrich, doing business as Heinrich Cattle Company, Bowman, North Dakota, waived 

his right to a hearing, entered into a stipulation agreement, and paid a penalty of $3,500 after 

GIPSA found that he failed to pay within the time period required by the P&S Act.

Bruce Medley, dba B&M Livestock, Smithville, Tennessee, waived his right to a hearing, 

entered into a stipulation agreement, and paid a penalty of $2,500 after GIPSA found that he 

failed to pay for livestock within the time period required by the P&S Act.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 46

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 15-10

GIPSA Alleges WW Boer Goats, Inc., aka Boer Meat Goats, LLC and Frank Willis Violated the

Packers and Stockyards Act

WASHINGTON, May 6, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that WW Boer Goats, 

Inc. (Boer Goats), also known as Boer Meat Goats, LLC (Boer Meat) and Frank Willis (Willis), 

Adair, Oklahoma:

• failed to pay for livestock purchases within the time period required by the Packers and 

Stockyards (P&S) Act; and

• failed to maintain an adequate bond.

GIPSA filed a complaint against Boer Goats, Boer Meats and Willis on April 19, 2010. If the 

allegations are admitted, or proven in an oral hearing, they may be ordered to cease and 

desist from violating the P&S Act, suspended, and assessed a civil penalty.

Boer Goats engaged in the business of a market agency buying livestock on a commission 

basis and as a dealer buying and selling livestock in commerce. Boer Goats filed for Chapter 

7 bankruptcy on February 25, 2009, but still continued livestock operations after that date.

Boer Meat engaged in the business of a dealer buying and selling livestock in commerce.

Willis is president of Boer Goats; owns 100% of Boer Meats, is responsible for the direction, 

management and control of both companies; and is a market agency and dealer.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 47

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 20-10

GIPSA Alleges First World Management Services, Inc., dba Bios Zabeeha Halal Foods and

Tahawwur H. Rana Violated the Packers and Stockyards Act

WASHINGTON, May 6, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that First World 

Management Services, Inc., (First World), doing business as Bios Zabeeha Halal Foods and 

Tahawwur H. Rana (Rana), Kinsman, Illinois:

• failed to pay for livestock purchases; and

• failed to pay for livestock purchases within the time period required by the Packers and 

Stockyards (P&S) Act.

GIPSA filed a complaint against First World and Rana on April 19, 2010. If the allegations are 

admitted, or proven in an oral hearing, First World and Rana may be ordered to cease and 

desist from violating the P&S Act and assessed a civil penalty.

First World and Rana engaged in the business of buying livestock in commerce for the 

purpose of slaughter; manufactures or prepares meat and meat food products for sale or 

shipment in commerce; and is a packer.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 48

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 47-10

GIPSA Settles Five Cases Resulting in $56,487 in Civil Penalties

WASHINGTON, May 13, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer 

alleged violators the option of waiving their rights to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled five cases resulting in $56,487 in civil penalties.

Cargill Meat Solutions Corporation, Cargill Pork, LLC (Cargill), Wichita, Kansas, waived 

their right to a hearing, entered into a stipulation agreement, and paid a penalty of $45,000 

after GIPSA found that Cargill failed to incorporate changes in livestock contracts. This 

offer of settlement was made, in part, because after receiving a notice from GIPSA of an 

upcoming audit, Cargill self reported the violation. Those changes were mandated by the 

2008 Farm Bill. Cargill failed to include in its contracts, among other things, a provision giving 

the producer the option to decline use of arbitration to resolve disputes arising under the 

contract.

West Michigan Beef Company, LLC, Hudsonville, Michigan, waived its right to a hearing, 

entered into a stipulation agreement, and paid a penalty of $1,400 after GIPSA found that it 

failed to use a scale ticket printer installed on the monorail scale when purchasing livestock 

on a carcass weight basis.

Michael M. Jorgensen, dba Western State Livestock, Limon, Colorado, waived his right to 

a hearing, entered into a stipulation agreement, and paid a penalty of $4,000 after GIPSA

found that he was operating without registration, operating without financial instrument, and 

failed to pay, when due, for livestock.
GIPSA News Release 2010

Page 49

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Good’s Cattle Company, Inc., Denver, Pennsylvania, waived its right to a hearing, entered 

into a stipulation agreement, and paid a penalty of $2,699 after GIPSA found it had failed to 

pay for livestock when due.

NFO Members Livestock, Inc., dba Nexus Marketing, Ames, Iowa, waived its right to a 

hearing, entered into a stipulation agreement, and paid a penalty of $3,388 after GIPSA

found it failed to pay for livestock when due.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries.
GIPSA News Release 2010

Page 50

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 41-10

GIPSA Alleges American Beef Packers, Inc. Violated the Packers and Stockyards Act

WASHINGTON, May 13, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that American Beef 

Packers, Inc. (American Beef), Chino, California, purchased livestock and failed to pay in a 

timely manner the full purchase price for the livestock purchased.

GIPSA filed a complaint against American Beef on April 20, 2010. If the allegations are 

admitted, or proven in an oral hearing, American Beef may be ordered to cease and desist 

from violating the Packers and Stockyards (P&S) Act and assessed a civil penalty.

American Beef engaged in the business of buying livestock in commerce for the purposes 

of slaughter and manufacturing or preparing meats or meat products for sale or shipment in 

commerce and is a packer.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 51

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 49-10

Ruben S. Saavedra, Jr. is Assessed a Civil Penalty in the Amount of $5,000

WASHINGTON, May 20, 2010 - On May 5, 2010, the U.S. Department of Agriculture’s Grain 

Inspection, Packers and Stockyards Administration entered into a decision by reason of 

consent with Ruben Saavedra, Jr. (R. Saavedra), Jarales, New Mexico.

R. Saavedra has been ordered to cease and desist from engaging in operations subject to 

the Packers and Stockyards (P&S) Act without maintaining an adequate bond and registering 

with the Secretary.

R. Saavedra has also been assessed a civil penalty in the amount of $5,000.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 52

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 38-10

McLaughlin Livestock, Inc. Has Been Suspended By USDA

WASHINGTON, May 20, 2010 - On May 5, 2010, the U.S. Department of Agriculture’s Grain 

Inspection, Packers and Stockyards Administration entered into a decision without hearing 

by reason of admissions with McLaughlin Livestock, Inc. (McLaughlin), McLaughlin, South 

Dakota.

McLaughlin has been ordered to cease and desist from operating while its current liabilities 

exceed its current assets.

McLaughlin is suspended as a registrant for 30 days.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 53

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 48-10

GIPSA Settles Two Cases Resulting in $3,550 in Civil Penalties

WASHINGTON, May 20, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled two cases resulting in $3,550 in civil penalties.

Cary N. Ponder, dba Ponder Livestock Company, Greenwood, South Carolina, waived his 

right to a hearing, entered into a stipulation agreement, and paid a penalty of $1,550 after 

GIPSA found that Ponder failed to pay when due for livestock.

Joseph Blystone, Blystone Farm, LLC, Canal Winchester, Ohio, waived his right to a hearing, 

entered into a stipulation agreement, and paid a penalty of $2,000 after GIPSA found that he 

failed to install a printer on scale.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 54

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 50-10

Efren Saavedra, Jr. dba Ft. Worth & Company is Assessed a Civil Penalty in the Amount of 

$4,000

WASHINGTON, May 20, 2010 - On May 5, 2010, the U.S. Department of Agriculture’s Grain 

Inspection, Packers and Stockyards Administration entered into a decision by reason of 

consent with Efren Saavedra, Jr.

(E. Saavedra), doing business as Ft. Worth & Company, Albuquerque, New Mexico.

E. Saavedra has been ordered to cease and desist from:

• failing to pay the full purchase price for livestock within the time period required by the 

Packers and Stockyards (P&S) Act; and

• engaging in operations subject to the P&S Act without maintaining an adequate bond and 

registering with the Secretary.

E. Saavedra has also been assessed a civil penalty in the amount of $4,000.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 55

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 56-10

Richard Hale is Assessed a Civil Penalty in the Amount of $10,000

WASHINGTON, June 3, 2010 - On May 20, 2010, the U.S. Department of Agriculture’s Grain 

Inspection, Packers and Stockyards Administration entered into a decision by reason of 

consent with Richard Hale, Twin Falls, Idaho.

Richard Hale has been ordered to cease and desist from failing to pay sellers for the sale of 

their livestock within the time period required by the Packers and Stockyards (P&S) Act.

Richard Hale has also been assessed a civil penalty in the amount of $10,000.

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..
GIPSA News Release 2010

Page 56

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 58-10

GIPSA Settles Two Cases Resulting in $5,750 in Civil Penalties

WASHINGTON, June 3, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled two cases resulting in $5,750 in civil penalties.

Park Packing Company, Chicago, Illinois, waived his right to a hearing, entered into a 

stipulation agreement, and paid a penalty of $2,250 after GIPSA found that he failed to pay, 

when due, for livestock.

Mark Robinson, doing business as Robinson Livestock, Lemmon, South Dakota, waived his 

right to a hearing, entered into a stipulation agreement, and paid a penalty of $3,500 after 

GIPSA found that he failed to pay, when due, for livestock.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 57

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 57-10

GIPSA Alleges Vermilion Ranch Co., dba Northern Livestock Video Auction Violated the Packer

and Stockyards Act

WASHINGTON, June 3, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Vermilion Ranch 

(Vermilion Ranch) Co., doing business as Northern Livestock Video Auction, Billings, 

Montana:

• sold cattle on two occasions in 2008, using a scale that had been rejected; and

• sold cattle on three occasions in 2008, using a scale that was made inactive in 2005 by the 

scale owner.

GIPSA filed a complaint against the Vermilion Ranch on May 27, 2010. If the allegations are 

admitted, or proven in an oral hearing, Vermilion Ranch may be ordered to cease and desist 

from violating the P&S Act, suspended, and assessed a civil penalty.

Vermilion Ranch is engaged in the business of buying and selling livestock in commerce for 

its own account as a market agency and is registered with the Secretary of Agriculture as a 

market agency selling livestock on commission.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 58

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 43-10

GIPSA Alleges Robert and Patricia Trindade, dba Newman Livestock Auction Misused Their

Custodial Account

WASHINGTON, June 3, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Robert Trindade 

and Patricia Trindade, doing business as Newman Livestock Auction, Newman, California:

• issued custodial checks without having sufficient funds to cover checks;

• failed to reimburse the custodial account for bank charges;

• misused custodial account funds by transferring money from the custodial account to the 

general account; and

• failed to remit the net proceeds due from the sale of livestock on a commission basis to 89

consignors for 168 consignments.

GIPSA filed a complaint against the Robert and Patricia Trindade on May 11, 2010. If the 

allegations are admitted, or proven in an oral hearing, Robert and Patricia Trindade

may be ordered to cease and desist from violating the Packers and Stockyards (P&S) Act, 

suspended, and assessed a civil penalty.

Robert and Patricia Trindade were engaged in the business of a market agency selling 

livestock in commerce on a commission basis, dealers buying and selling livestock in 

commerce for their own account; and are registered with the Secretary of Agriculture as a 

market agency selling livestock in commerce on a commission basis and as a dealer buying 

and selling livestock in commerce.

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..
GIPSA News Release 2010

Page 59

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 42-10

GIPSA Alleges H.D. Edwards Operated as a Dealer without a Bond

WASHINGTON, June 3, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that H.D. Edwards, 

Marana, Arizona:

• operated as a dealer, buying and selling livestock in commerce for his own account, 

without a bond or bond equivalent in violation of the Packers and Stockyards (P&S) Act; 

and

• failed to pay the full purchase price for the livestock within the time period required by the 

P&S Act.

GIPSA filed a complaint against the H.D. Edwards on May 26, 2010. If the allegations are 

admitted, or proven in an oral hearing, H.D. Edwards may be ordered to cease and desist 

from violating the P&S Act, suspended, and assessed a civil penalty.

H.D. Edwards was operating as a dealer, buying and selling livestock in commerce for his 

own account; and is not registered, as required, as a dealer with the Secretary of Agriculture.

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..
GIPSA News Release 2010

Page 60

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 37-10

GIPSA Alleges Daniel Murray Did Not Maintain an Adequate Bond In Violation of the Packers and

Stockyards Act

WASHINGTON, June 3, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Daniel Murray 

operated as a dealer buying on commission without maintaining an adequate bond.

GIPSA filed a complaint against Daniel Murray on May 26, 2010. If the allegations are 

admitted, or proven in an oral hearing, Daniel Murray may be ordered to cease and desist 

from violating the Packers and Stockyards (P&S) Act, suspended, and assessed a civil 

penalty.

Daniel Murray is engaged in the business of buying and selling livestock in commerce for his 

own account as a dealer; and is registered with the Secretary of Agriculture as a dealer to 

buy and sell livestock in commerce for his own account, and as a market agency buying on 

commission.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 61

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 18-10

Jeff Dutton, dba Jeff Dutton Cattle Co., and dba Bar 7 Cattle Co. is Suspended as a Registrant

WASHINGTON, June 17, 2010 - On June 2, 2010, the U.S. Department of Agriculture’s Grain 

Inspection, Packers and Stockyards Administration issued a default decision against Jeff 

Dutton (Dutton), doing business as Jeff Dutton Cattle Co., and doing business as Bar 7 Cattle 

Co., Texas.

Dutton has been ordered to cease and desist from:

• engaging in business without maintaining an adequate bond;

• issuing checks for livestock purchases without having sufficient funds on deposit to pay for 

said purchases;

• failing to pay the full purchase price for livestock within the time period required by the 

Packers and Stockyards (P&S) Act; and

• failing to pay the full purchase price for livestock purchases.

Dutton is suspended as a registrant for a period of five years.

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..
GIPSA News Release 2010

Page 62

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 60-10

GIPSA Settles a Case Resulting in a $3,500 Civil Penalty

WASHINGTON, June 17, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled a case resulting in a $3,500 civil penalty.

John D. Radford, Urbana, Ohio, waived his right to a hearing, entered into a stipulation 

agreement, and paid a penalty of $3,500 after GIPSA found that he failed to pay, within the 

time period required by the P&S Act, for livestock.

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..
GIPSA News Release 2010

Page 63

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 61-10

GIPSA Identifies Livestock Dealers and Market Agencies with Expired Registrations

WASHINGTON, June 17, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has posted a list, on its web site, of livestock 

dealers and market agencies, whose registrations to operate under the Packers and 

Stockyards Act have recently expired.

As of March 11, 2010, Packers and Stockyards (P&S) regulations require dealers and market 

agencies to timely file their required annual report with GIPSA in order to maintain a current 

registration. Under section 201.10 of the P&S regulations, those registrations expire if annual 

reports are not submitted timely. GIPSA has posted the list of those dealers and market 

agencies whose registrations have expired. The list is available for public review on GIPSA’s 

web site under the link Regulated Entities.

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..
GIPSA News Release 2010

Page 64

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 62-10

GIPSA Settles a Case Resulting in a $1,500 Civil Penalty

WASHINGTON, June 24, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled a case resulting in a $1,500 civil penalty.

4J Cattle Co., LLC and Randy Stewart, waived his right to a hearing, entered into a 

stipulation agreement, and paid a penalty of $1,500 after GIPSA found that he operated as a 

livestock dealer subject to the P&S Act without filing the required bond coverage.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 65

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 64-10

Joe Barkdull and Larry Spegal, dba Knightstown Livestock Auction Misused Their Custodial

Account

WASHINGTON, July 8, 2010 - On June 25, 2010, the U.S. Department of Agriculture’s Grain 

Inspection, Packers and Stockyards Administration entered into a decision without hearing by 

reason of consent with Joe Barkdull (Barkdull) and Larry Spegal (Spegal), doing business as 

Knightstown Livestock Auction, Knightstown, Indiana.

Barkdull and Spegal have been ordered to cease and desist from:

• failing to deposit in their Custodial Account for Shippers’ Proceeds, within the time 

prescribed, amounts equal to the outstanding proceeds receivable for the sale of 

consigned livestock;

• failing to properly use and maintain their Custodial Account for Shippers’ Proceeds;

• using funds from the sale of consigned livestock for purposes other than payment to 

consignors of the amount due from the sale of their livestock and the payment of lawful 

marketing charges; and

• operating while insolvent as required by the Packers and Stockyards (P&S) Act and 

regulations.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 66

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 52-10

GIPSA Posts Stockyard Tariffs on Web Site

WASHINGTON, DC (July 08, 2010) - The USDA Grain Inspection, Packers and Stockyards 

Administration today posted on its web site the tariffs, or schedules of rates and charges for 

stockyard services, for all stockyards and market agencies selling on commission that are 

operating at posted stockyards.

Each stockyard owner and market agency selling on commission operating at a posted 

stockyard must file with GIPSA a schedule of rates and charges, and must post the schedule, 

or tariff, on the business’ premises in an area that is accessible and visible to the public. Each 

tariff must include a description of the stockyard services rendered, the stockyard at which it 

applies, the name and address of the stockyard owner or market agency, the kind of livestock 

covered, and any rules or regulations that may affect any rate or charge. If applicable, the 

tariff also must include feed charges, if any, and charges for professional veterinary service 

rendered.

GIPSA’s listing of stockyard tariffs is located at http://archive.gipsa.usda.gov/psp_tariff/

default.aspx. Users can search by state for tariffs for specific facilities.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 67

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 66-10

GIPSA Extends Comment Period for Farm Bill Proposed Rule

WASHINGTON, DC (July 26, 2010) - The USDA Grain Inspection, Packers and Stockyards 

Administration is extending the comment period for the regulations required by Title XI of the 

Food, Conservation and Energy Act of 2008 and regarding conduct in violation of the Packers 

and Stockyards Act until November 22, 2010.

GIPSA published the proposed rule in the Federal Register on June 22, 2010 (75 FR 35338). 

The Agency proposed adding several new sections to the regulations under the Packers and 

Stockyards Act of 1921, as amended and supplemented.

GIPSA will consider comments received by November 22, 2010. Comments may be 

submitted via e-mail to comments.gipsa@usda.gov; hard copy via mail, hand delivery, or 

courier to Tess Butler, GIPSA, USDA, 1400 Independence Avenue, SW, Room 1643-S, 

Washington, DC 20250-3604; fax to (202) 690-2173; or via the Federal eRulemaking Portal 

at http://www.regulations.gov.

There also will be a fact sheet about the rule on the GIPSA web page.

For further information, contact Brett Offutt, Director, GIPSA Policy and Litigation Division, at 

(202) 720- 7363.

Dana Stewart

202-720-5091.
GIPSA News Release 2010

Page 68

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 67-10

GIPSA Settles a Case Resulting in a $1,000 Civil Penalty

WASHINGTON, July 29, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled a case resulting in a $1,000 civil penalty.

Farmington Livestock, LLC and Keith Robertson, Bourbon, Missouri, waived his right to a 

hearing, entered into a stipulation agreement, and paid a penalty of $1,000 after GIPSA

found that he had a custodial shortage, misused custodial funds, and failed to keep adequate 

records.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 69

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 65-10

El Campo Livestock Co., Inc. and John Banker are Assessed a Civil Penalty in the Amount of

$4,000

WASHINGTON, July 29, 2010 - On June 2, 2010, the U.S. Department of Agriculture’s Grain 

Inspection, Packers and Stockyards Administration entered into a consent decision with 

El Campo Livestock Co., Inc. (El Campo) and John Banker (Banker), El Campo, Texas El 

Campo and Banker have been ordered to cease and desist from:

• failing to deposit in the Custodial Account for Shippers’ proceeds, within the times 

prescribed in the regulations, amounts equal to the outstanding proceeds receivable from 

the sale of consigned livestock; and

• failing to maintain the Custodial Account for Shippers’ proceeds in strict conformity with the

regulations.

El Campo and Banker have also been assessed a civil penalty in the amount of $4,000.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 70

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 34-10

Chuck L. Matteson and Justin L. Matteson, dba Matteson Livestock are Assessed a Civil Penalty 

in the Amount of $17,500

WASHINGTON, July 29, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration issued a default decision, which became final on July 

19, 2010, against Chuck L. Matteson (C. Matteson) and Justin L. Matteson (J. Matteson), 

Heppner, Oregon, doing business as Matteson Livestock.

C. and J. Matteson have been ordered to cease and desist from:

• failing to pay the full purchase price for livestock within the time period required by the 

Packers and Stockyards (P&S) Act;

• failing to pay the full purchase price for livestock purchases; and

• failing to maintain records that fully and correctly disclose all transactions subject to the 

P&S Act.

C. and J. Matteson are suspended as registrants for a period of five years. They have also 

been assessed a civil penalty in the amount of $17,500.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 71

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 68-10

GIPSA Alleges Royal Halal Meats, Inc. Failed to Pay for Livestock Purchases

WASHINGTON, Aug. 12, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) has found evidence that Royal Halal 

Meats, Inc. (Royal Halal), Detroit, Michigan:

• purchased livestock on a live-weight basis and failed to pay the full purchase price for 

livestock;

• issued a check for livestock purchases without having sufficient funds to cover the check; 

and

• as of the date of this complaint, approximately $58,535.94 remains unpaid for livestock 

purchases.

GIPSA filed a complaint against Royal Halal on August 6, 2010. The complaint can be found 

on the GIPSA Web. If the allegations are admitted, or proven in an oral hearing, Royal Halal 

may be ordered to cease and desist from violating the Packers and Stockyards (P&S) Act 

and assessed a civil penalty.

Royal Halal is a packer engaged in the business of buying livestock in commerce for the 

purpose of slaughter.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 72

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 70-10

Warren Hudspeth is Suspended as a Dealer

WASHINGTON, Aug. 19, 2010 - On August 9, 2010, the U.S. Department of Agriculture’s 

Grain Inspection, Packers and Stockyards Administration entered into a consent decision 

with Warren Hudspeth (Hudspeth),Pilot Point, Texas.

Hudspeth has been ordered to cease and desist from:

• issuing checks without having sufficient funds available;

• failing to pay the full amount of the purchase price for livestock within the time period 

required by the Packers and Stockyards (P&S) Act; and

• failing to pay the full purchase for livestock purchases.

Hudspeth’s individual dealer registration with the Packers and Stockyards Program has been 

suspended for a period of five years.

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..
GIPSA News Release 2010

Page 73

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 69-10

GIPSA Settles a Case Resulting in a $1,250 Civil Penalty

WASHINGTON, Aug. 19, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism to 

quickly resolve violations of the Packers and Stockyards (P&S) Act.

GIPSA may offer an alleged violator the option of waiving their right to a hearing and entering 

into a stipulation agreement to quickly resolve alleged violations.

GIPSA recently settled a case resulting in a $1,250 civil penalty.

Red Rock Holdings, Inc., Brewster, Minnesota, waived its right to a hearing, entered into 

a stipulation agreement, and paid a penalty of $1,250 after GIPSA found that it failed to 

disclose contract producers right, prior to entering the contract, to decline to be bound by the 

arbitration provisions in the contract.

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..
GIPSA News Release 2010

Page 74

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 71-10

GIPSA Settles a Case Resulting in a $2,500 Civil Penalty

WASHINGTON, Aug. 26, 2010 -The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled a case resulting in a $2,500 civil penalty.

Lynn R. Hottle, Rome, Pennsylvania, waived rights to a hearing, entered into a stipulation 

agreement, and paid a penalty of $2,500 after GIPSA found that Hottle failed to pay for 

livestock within the time period required by 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..
GIPSA News Release 2010

Page 75

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 73-10

GIPSA Settles Two Cases Resulting in $2,000 in Civil Penalties

WASHINGTON, Sept. 2, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled two cases resulting in $2,000 in civil penalties.

Leon Farrow, dba J&L Farms, Ledyard, Iowa, waived his right to a hearing, entered into a 

stipulation agreement, and paid a penalty of $1,000 after GIPSA found that he failed to pay, 

when due, for livestock.

Ricardo De Los Santos, Dairyland Packing, Inc., dba Pecos Valley Meat, Roswell, New 

Mexico, waived his right to a hearing, entered into a stipulation agreement, and paid a 

penalty of $1,000 after GIPSA found that he failed to pay, when due, for livestock and failed 

to maintain records.

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..
GIPSA News Release 2010

Page 76

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 74-10

Deward B. Wolfe and Jonathan Wolfe, dba Wolfe Livestock are assessed a Civil Penalty in the

Amount of $2,200

WASHINGTON, Sept. 2, 2010 - On August 20, 2010, the U.S. Department of Agriculture’s 

Grain Inspection, Packers and Stockyards Administration entered into a consent decision 

with Deward B. Wolfe and Jonathan Wolfe, dba Wolfe Livestock, Bean Station, Tennessee.

Deward and Jonathan Wolfe have been ordered to cease and desist from failing to pay the 

full amount of the purchase price for livestock within the time period required by the Packers 

and Stockyards (P&S) Act.

Deward and Jonathan Wolfe have been assessed a civil penalty in the amount of $2,200.

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..
GIPSA News Release 2010

Page 77

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 75-10

Kao Vang and Chue Thao, dba California Fresh Meats are Assessed A Civil Penalty in the 

Amount of $14,000

WASHINGTON, Sept. 9, 2010 - On August 16, 2010, the U.S. Department of Agriculture’s 

Grain Inspection, Packers and Stockyards Administration issued a default decision against 

Kao Vang (Vang) and Chue Thao (Thao), doing business as California Fresh Meats, Fresno, 

California.

Vang and Thao have been ordered to cease and desist from engaging in business in any 

capacity for which bonding is required under the Packers and Stockyards (P&S) Act.

Vang and Thao have been assessed a civil penalty in the amount of $14,000.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 78

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 76-10

E.M.M. Pig Placement Co., LLC is Suspended as a Registrant

WASHINGTON, Sept. 9, 2010 - On August 25, 2010, the U.S. Department of Agriculture’s 

Grain Inspection, Packers and Stockyards Administration issued a default decision against 

E.M.M. Pig Placement Co., LLC (E.M.M.).

E.M.M. has been ordered to cease and desist from failing to pay, in a timely manner, the full 

purchase price of livestock and failing to pay the full purchase price of livestock.

E.M.M. has been suspended as a registrant for a period of five years. A supplemental order 

may be issued terminating the suspension of E.M.M. if circumstances are demonstrated 

warranting modification of the order.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 79

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 54-10

Clarence Ricky Fisher, aka Ricky Fisher is Assessed a Civil Penalty in the Amount of $12,500

WASHINGTON, Sept. 9, 2010- On August 25, 2010, the U.S. Department of Agriculture’s 

Grain Inspection, Packers and Stockyards Administration issued a default decision against 

Clarence Ricky Fisher, also known as Ricky Fisher (Fisher), South Loretto, Tennessee.

Fisher has been ordered to cease and desist from engaging in business in any capacity for 

which bonding is required under the Packers and Stockyards (P&S) Act.

Fisher has been assessed a civil penalty in the amount of $12,500.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 80

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 77-10

GIPSA Settles Two Cases Resulting in $8,350 in Civil Penalties

WASHINGTON, Sept. 23, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled two cases resulting in $8,350 in civil penalties.

Gary Davis, dba Caldwell Sales Company, Caldwell, Kansas waived his right to a hearing, 

entered into a stipulation agreement, and paid a penalty of $2,600 after GIPSA found that he 

had custodial account shortages and custodial misuses.

Rod Taylor and Perkins Livestock LLC, Perkins, Oklahoma, waived his right to a hearing, 

entered into a stipulation agreement, and paid a penalty of $5,750 after GIPSA found that 

he operated with shortages in his custodial account, had custodial account misuses, and 

falsified records.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 81

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 84-10

Otis Lewis Fortner II, dba Lewie Fortner Livestock is assessed A Civil Penalty in the Amount of

$2,000

WASHINGTON, Oct. 7, 2010 - On September 29, 2010, the U.S. Department of Agriculture’s 

Grain Inspection, Packers and Stockyards Administration entered into a consent decision 

with Otis Lewis Fortner II (Fortner), doing business as Lewie Fortner Livestock, Kite, Georgia.

Fortner has been ordered to cease and desist from:

• failing to pay the full amount of the purchase price for livestock within the time period 

required by the Packers and Stockyards (P&S) Act; and

• failing to pay the full purchase price for livestock.

Fortner has been assessed a civil penalty in the amount of $2,000.

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..
GIPSA News Release 2010

Page 82

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 53-10

James Masters LLC is Assessed a $2,640 Civil Penalty

WASHINGTON, Oct. 7, 2010 - On September 7, 2010, the U.S. Department of Agriculture’s 

Grain Inspection, Packers and Stockyards Administration issued a default decision against 

James Masters (Masters), Wheeler, Texas.

Masters has been ordered to cease and desist from:

• engaging in business in any capacity for which bonding is required under the Packers and 

Stockyards (P&S) Act without maintaining an adequate bond or bond equivalent; and

• failing to keep accounts, records, and memoranda that fully and correctly disclose all 

transactions involved in his business.

Masters has been assessed a civil penalty in the amount of $2,640.

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..
GIPSA News Release 2010

Page 83

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 82-10

GIPSA Alleges Ravenna Auction, LLC and LaVerne Lettinga Misused Custodial Account for

Shippers’ Proceeds and Misrepresented Weights and Purchase Price

WASHINGTON, Oct. 7, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Ravenna Auction, 

LLC (Ravenna Auction) and LaVerne Lettinga (Lettinga), Ravenna, Michigan:

• operated with a Custodial Account for Shippers’ Proceeds shortage;

• failed to timely reimburse the custodial account;

• failed to maintain records that fully and correctly disclosed all transactions involved in the 

business;

• misused the custodial account by depositing custodial funds in the general account, using 

custodial funds for loan repayments, and allowing bank charges to be withdrawn from the 

custodial account; and

• misrepresented to consignors the actual weight and purchase prices of livestock sold on 

grade and weight basis to packers, resulting in a monetary loss to consignors.

GIPSA filed a complaint against Ravenna Auction and Lettinga on September 30, 2010. If 

the allegations are admitted, or proven in an oral hearing, Ravenna Auction and Lettinga 

may be ordered to cease and desist from violating the Packers and Stockyards (P&S) Act, 

suspended and assessed a civil penalty.

Ravenna Auction was engaged in the business of a market agency selling livestock in 

commerce on a commission basis and is registered with the Secretary of Agriculture as a 

market agency to sell livestock in commerce on a commission basis.

Lettinga was president, 100% owner and responsible for the management, direction, and 

control of Ravenna Auction.

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..
GIPSA News Release 2010

Page 84

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 83-10

GIPSA Alleges Randall J. Unger Failed to Pay for Livestock Purchases

WASHINGTON, Oct. 7, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Randall J. Unger 

(Unger), doing business as Lake Area Livestock Marketing, Watertown, South Dakota:

• purchased livestock and did not pay the full purchase price for livestock; and

• issued checks in payment for livestock purchases that were returned unpaid by the bank.

GIPSA filed a complaint against JBS on September 30, 2010. If the allegations are admitted, 

or proven in an oral hearing, Unger may be ordered to cease and desist from violating the 

Packers and Stockyards (P&S) Act, suspended and assessed a civil penalty.

Unger was engaged in the business of buying and selling livestock in commerce and is 

registered with the Secretary of Agriculture as a dealer buying and selling livestock.

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..
GIPSA News Release 2010

Page 85

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 79-10

GIPSA Alleges Lake Odessa Livestock Auction, Inc. & LaVerne Lettinga Violated the Packers and

Stockyards Act

WASHINGTON, Oct. 7, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Lake Odessa 

Livestock Auction, Inc. (Lake Odessa) and LaVerne Lettinga (Lettinga), Lake Odessa, 

Michigan:

• operated with a Custodial Account for Shippers’ Proceeds shortage;

• failed to timely reimburse the custodial account;

• deposited custodial account funds proceeds into its general account;

• issued check to consignors or shippers of livestock which were returned unpaid;

• failed to remit, when due, the net proceeds due to consignors from the sale of livestock on 

a commission basis; and

• allowed bank charges to be withdrawn from the custodial account.

GIPSA filed a complaint against Lake Odessa and Lettinga on October 4, 2010. If the 

allegations are admitted, or proven in an oral hearing, Lake Odessa and Lettinga may 

be ordered to cease and desist from violating the Packers and Stockyards (P&S) Act, 

suspended and/or assessed a civil penalty.

Lake Odessa engaged in the business of a market agency selling livestock in commerce on 

a commission basis. Lake Odessa is also registered with the Secretary of Agriculture as a 

dealer to buy and sell livestock in commerce for its own account and as a market agency to 

buy and sell livestock in commerce on a commission basis.

Lettinga was president, general manager, director and 50% owner of Lake Odessa. Lettinga 

was also responsible for the management, direction, and control of Lake Odessa.

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..
GIPSA News Release 2010

Page 86

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 81-10

GIPSA Alleges JBS USA, LLC, fka Swift & Company and Swift Pork Company Violated the 

Packers and Stockyards Act

WASHINGTON, Oct. 7, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that JBS USA, LLC 

(JBS), formerly known as Swift & Company and Swift Pork Company, Greeley, Colorado:

• Used an electronic probe known as the Fat-O-Meat’er to calculate the lean percent of 

processed hogs in order to adjust carcass merit payment to hog sellers and on occasion 

the Fat-O-Meat’er probe failed to obtain lean data for a particular carcass or carcasses in a 

lot. Additionally, lean percent was not calculated for carcasses with missing data;

• JBS purchased hogs on a carcass merit basis and provided inaccurate accountings to 

sellers in that JBS failed to disclose when missing Fat-O-Meat’er data prevented JBS 

from calculating the lean percent of a particular carcass or carcasses in a seller’s lot and 

substituted an arbitrary lean value of 49% for carcasses with missing data;

• Hog sellers to JBS’ plants received an automatic discount of $1 to $2 per hundredweight 

(cwt) for carcasses with missing Fat-O-Meat’er data and were unable to obtain possible 

premiums of up to $5.30 cwt for those carcasses; and

• JBS’ use of an undisclosed, arbitrary lean percent value of 49% to calculate carcass merit 

payments for carcasses with missing Fat-O-Meat’er data, versus a lean percent equal 

to the average of the remainder of the lot, reduced payments for hogs delivered to JBS’

Worthington, Marshalltown, and Louisville plants by an estimated $350,000 during the 

period of January 1, 2007, through November 30, 2007.

GIPSA filed a complaint against JBS on September 30, 2010. If the allegations are admitted, 

or proven in an oral hearing, JBS may be ordered to cease and desist from violating the P&S 

Act and assessed a civil penalty.

JBS engaged in the business of buying livestock in commerce and is a packer.

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..
GIPSA News Release 2010

Page 87

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 80-10

GIPSA Alleges Charles Jeffers Failed to Pay for Livestock Purchases

WASHINGTON, Oct. 7, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Charles Jeffers 

(Jeffers), Somerset, Ohio:

• purchased livestock and did not pay the full purchase price for livestock; and

• as of the date of this complaint, $23,600.44 remains unpaid.

GIPSA filed a complaint against Jeffers on September 29, 2010. If the allegations are 

admitted, or proven in an oral hearing, Jeffers may be ordered to cease and desist from 

violating the Packers and Stockyards (P&S) Act, suspended and assessed a civil penalty.

Jeffers was engaged in the business of buying and selling livestock in commerce as a 

dealer for his own account or the account of others and is registered with the Secretary of 

Agriculture.

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..
GIPSA News Release 2010

Page 88

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 85-10

Terry Roth, dba Indian Creek Meadows is assessed A Civil Penalty in the Amount of $10,000

WASHINGTON, Oct. 14, 2010 - On September 22, 2010, the U.S. Department of 

Agriculture’s Grain Inspection, Packers and Stockyards Administration entered into a consent 

decision with Terry Roth (Roth), doing business as Indian Creek Meadows, Millersville, 

Missouri.

Roth is suspended as a registrant for a period of five years and has been assessed a civil 

penalty in the amount of $10,000.

The decision results from an investigation culminated in a complaint filed on December 23, 

2009, in which GIPSA alleged that Roth failed to pay sellers for the sale of their livestock 

within the time period required by the Packers and Stockyards (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. The 

complaint can be found on the GIPSA Web site..
GIPSA News Release 2010

Page 89

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 88-10

USDA SCHEDULES PUBLIC MEETING ON TRUST PROVISIONS OF THE PACKERS AND 

STOCKYARDS ACT

WASHINGTON, October 21, 2010- USDA’s Grain, Inspection, Packers and Stockyards 

Administration (GIPSA) will hold a public meeting on Wednesday, October 27, in Fargo, ND, 

to inform cattle producers who have done business with North American Bison Cooperative 

LLC, doing business as North Dakota Natural Beef, of their rights under the trust and bond 

provisions of the Packers and Stockyards (P&S) Act.

North Dakota Natural Beef ceased purchasing livestock for its slaughtering operations on 

Thursday, October 11, 2010 at its packing plant in New Rockford, North Dakota.

At the public meeting, GIPSA will provide information and the forms necessary for filing a 

claim under the trust provisions of the P&S Act and for filing a bond claim on payments due 

from North Dakota Natural Beef. GIPSA also will accept claims submitted at the meeting. 

Trust claims generally must be filed within 30 days from the date payment was due in a cash 

sale. Bond claims must be filed within 60 days from the date of the transaction on which the 

claim is based.

October 27, 2010

7 p.m. - 9 p.m.

Radisson Hotel

201 5th Street, N

Fargo, North Dakota

If you are hearing or visually impaired, or have a condition that requires special assistance, 

please notify Jay Johnson, Midwestern Regional Office, GIPSA Packers and Stockyards 

Program, United States Department of Agriculture, 210 Walnut Street, Des Moines, Iowa 

50309-2110; e-mail Jay.A.Johnson@usda.gov; phone (515) 323-2579; or fax (515) 323-2590.

Dana Stewart (202) 720-5091.
GIPSA News Release 2010

Page 90

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 87-10

Sam D. Holder, aka Bill Holder, and Mark K. Holder, dba Trousdale County Livestock Market are

Assessed a Civil Penalty in the Amount of $5,000

WASHINGTON, Oct. 21, 2010 - On October 7, 2010, the U.S. Department of Agriculture’s 

Grain Inspection, Packers and Stockyards Administration entered into a consent decision 

with Sam D. Holder, also known as Bill Holder, and Mark K. Holder (respondents) doing 

business as Trousdale County Livestock Market, Hartsville, Tennessee.

Respondents have been ordered to cease and desist from:

• failing to deposit into their custodial account, in a timely fashion, amounts equal to the 

proceeds receivable from the sale of consigned livestock; and

• failing to properly maintain their custodial account for shippers’ proceeds in strict 

conformity with the Packers and Stockyards (P&S) Act and Regulations.

Respondents have been assessed a civil penalty in the amount of $5,000.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 91

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 86-10

GIPSA Settles Two Cases Resulting in $23,000 in Civil Penalties

WASHINGTON, Oct. 21, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled two cases resulting in $23,000 in civil penalties.

Sarah Hirsch, Agri Star Meat & Poultry LLC, Postville, Iowa, waived their right to a hearing, 

entered into a stipulation agreement, and paid a penalty of $12,000 after GIPSA found that 

they were operating without a financial instrument and failed to furnish written contracts to 

poultry growers.

T. J. Russell, President, Cloverdale Foods Company, Minot, North Dakota, waived their right 

to a hearing, entered into a stipulation agreement, and paid a penalty of $10,000 after GIPSA

found that they used an inaccurate scale.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 92

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 93-10

GIPSA Settles Three Cases Resulting in $8,450 in Civil Penalties

WASHINGTON, Nov. 4, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations. 

GIPSA recently settled three cases resulting in $8,450 in civil penalties.

Jerry Stokes, Garrison, Texas, waived his right to a hearing, entered into a stipulation 

agreement, and paid a penalty of $2,700 after GIPSA found that he failed to pay when due 

and was operating without a financial instrument.

Bryan T. Smith, Bar S Cattle Company, LLC, Direct Cattle Company, LLC, Rigby, Idaho, 

waived their right to a hearing, entered into a stipulation agreement, and paid a penalty of 

$5,000 after GIPSA found that they failed to pay when due for livestock.

R&K Real Estate, Inc., doing business as Gallatin Livestock Auction, Gallatin, Missouri, 

waived its right to a hearing, entered into a stipulation agreement, and paid a penalty of $750 

after GIPSA found that it was operating with custodial account shortages and misused its 

custodial account.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 93

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 92-10

GIPSA Alleges Den-Franco Corporation, aka Chiappetti Lamb & Veal and Dennis Chiappetti

Violated the Packers and Stockyards Act

WASHINGTON, Nov. 4, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Den-Franco 

Corporation (Den-Franco), also known as Chiappetti Lamb & Veal and Dennis Chiappetti, 

Mokena, Illinois:

 entered into veal contracts with producers in which they agreed to pay a guaranteed 

minimum price per head, and subsequently failed to honor the guaranteed minimum price;

 failed to pay for livestock within the time period required by the Packers and Stockyards 

(P&S) Act; and

 delayed the contracted delivery dates and payment for calves in connection with veal 

contracts they entered into.

GIPSA filed a complaint against Den-Franco and Dennis Chiappetti on November 2, 2010. If 

the allegations are admitted, or proven in an oral hearing, Den-Franco and Dennis Chiappetti 

may be ordered to cease and desist from violating the P&S Act and assessed a civil penalty.

Den-Franco was engaged in the business of buying and selling livestock in commerce for the 

purpose of slaughter and is a packer.

Dennis Chiappetti was president; 100% owner; a packer; and responsible for the 

management, direction, and control of Den-Franco.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 94

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 90-10

GIPSA Alleges B&B Livestock Company, Inc. Violated the Packers and Stockyards Act

WASHINGTON, Nov. 4, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that B&B Livestock 

Company, Inc. (B&B Livestock), Danville, Ohio, purchased livestock and failed to pay the full 

purchase price for livestock within the time period required by the Packers and Stockyards 

(P&S) Act.

GIPSA filed a complaint against B&B Livestock on October 26, 2010. If the allegations are 

admitted, or proven in an oral hearing, B&B Livestock may be ordered to cease and desist 

from violating the P&S Act, suspended and assessed a civil penalty.

B&B Livestock engaged in the business of a dealer buying and selling livestock in commerce 

and is registered with the Secretary of Agriculture.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 95

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 91-10

GIPSA Alleges Apna Bazaar International, Inc., dba Ali Meat Industries Violated the Packers and

Stockyards Act

WASHINGTON, Nov. 4, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Apna Bazaar 

International, Inc. (Apna), doing business as Ali Meat Industries, Orlando, Florida, purchased 

livestock and did not pay in a timely fashion the full purchase price for livestock.

GIPSA filed a complaint against Apna on October 21, 2010. If the allegations are admitted, or 

proven in an oral hearing, Apna may be ordered to cease and desist from violating the P&S 

Act and assessed a civil penalty.

Apna was engaged in the business of buying livestock in commerce for slaughter and is a 

packer that filed a bond with GIPSA to secure its purchases of livestock.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 96

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 94-10

GIPSA Settles a Case Resulting in a $2,600 Civil Penalty

WASHINGTON, Nov. 10, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled a case resulting in a $2,600 civil penalty.

Badr Halal Meat, LLC, Salah Abdalla, Partner, Hassan Boukhari, Partner, Brighton, 

Tennessee, waived their right to a hearing, entered into a stipulation agreement, and paid a 

penalty of $2,600 after GIPSA found that they failed to pay when due for livestock.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 97

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 96-10

USDA Announces Latest Actions in the Eastern Livestock Company Failure

WASHINGTON, Nov. 22, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) on Friday November 19, 2010, filed an 

administrative complaint charging Eastern Livestock Company, LLC, and Tommy P. Gibson of 

New Albany, Indiana, with:

• failure to pay for livestock purchases;

• failure to pay timely for livestock purchases; and

• failure to maintain an adequate bond.

Eastern Livestock Company (Eastern) is one of the largest cattle brokerage companies in the 

United States, with operations in 11 states across the Mid-South, Midwest, and West.

“We take very seriously our responsibility to ensure that producers receive all protections 

afforded them by law and we will be working closely with the Department of Justice and law 

enforcement officials in the weeks and months ahead, “ said John Ferrell, Deputy Under 

Secretary for Marketing and Regulatory Programs.

GIPSA currently estimates that Eastern owes more than $130 million to 743 sellers in 30 

states. As of today, the agency has documented $81 million in returned checks and is 

currently onsite at Eastern’s headquarters assessing the situation, investigating possible 

violations of the Packers and Stockyards Act, and working to ensure that all available 

protections are afforded to producers.
GIPSA News Release 2010

Page 98

Outline of events:

• On November 3, 2010, a livestock seller complained to GIPSA that a payment check 

received for livestock sold to Eastern had been returned due to insufficient funds.

•

• On November 4, 2010, GIPSA deployed investigators to Eastern’s headquarters to 

investigate the original and subsequent complaints of failure to pay for livestock. GIPSA

also began deploying rapid response teams to markets nationwide that could be impacted 

by Eastern’s financial failure. The Agency also began issuing letters to unpaid sellers 

encouraging affected producers to submit bond claims. As of November 17, 2010, GIPSA 

issued 743 letters.

• On November 9, 2010, USDA issued a news release, Bond Information for Producers Who 

Sold Livestock to Eastern Livestock Company, LLC, explaining the situation and providing 

information on how to file bond claims under the Packers and Stockyards Act.

• On November 9, 2010, Fifth Third Bank filed a motion with the Hamilton County Court 

of Common Pleas in Ohio requesting issuance of a temporary restraining order and the 

appointment of a receiver. The court appointed Elizabeth M. Lynch, of Development 

Specialists Inc., of Cleveland, Ohio, as receiver to work on behalf of Eastern’s creditors, 

among which Fifth Third Bank is the secured creditor. The court also granted a temporary 

restraining order enjoining Eastern’s access to and dissipation of its financial assets.

• On November 10, 2010, Capital Indemnity Corporation served notice on Eastern 

cancelling Eastern’s surety bond for $875,000 effective December 30, 2010.

The receiver will be working to ensure that the secured creditor is paid. After the secured 

creditor, the bank, is paid the unsecured creditors, including livestock sellers, will be paid 

out of remaining funds. The receiver is authorized to take immediate possession, control, 

management, and charge of Eastern Livestock’s accounting books and records of whatever 

nature and wherever located, in the possession of Eastern Livestock or any other person or 

entity, including all information regarding the assets, liabilities, equity, income, and expenses 

of Eastern Livestock.

Purchasers of livestock and others affected by this incident who are unsure to whom to 

make payment for livestock purchases need to carefully consider their options in light of the 

applicable state and federal laws.

Unpaid sellers may contact GIPSA at 515-323-2579 for information on filing bond claims.

Contact:

USDA Office of Communications

(202) 720-4623

USDA.
GIPSA News Release 2010

Page 99

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 100-10

New Wilmington Livestock Auction, Inc. and Thomas R. Skelton Are Assessed a Civil Penalty in

the Amount of $3,500

WASHINGTON, Dec. 9, 2010 - On November 26, 2010, the U.S. Department of Agriculture’s 

Grain Inspection, Packers and Stockyards Administration entered into a consent decision 

with New Wilmington Livestock Auction, Inc. (New Wilmington) and Thomas R. Skelton 

(Skelton), Canfield, Ohio.

New Wilmington and Skelton have been ordered to cease and desist from failing to have their 

scales tested at six-month intervals.

They have also been assessed a civil penalty in the amount of $3,500.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 100

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 97-10

GIPSA Settles Cases Resulting in $18,850 in Civil Penalties

WASHINGTON, Dec. 9, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration’s (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled cases resulting in $18,850 in civil penalties.

Leo Lidgett, doing business as Central Iowa Hog Marketing, Bronson, Iowa, waived his right 

to a hearing, entered into a stipulation agreement, and paid a penalty of $1,600 after GIPSA

found that he was operating as an unregistered entity selling on commission. Also, he was 

collecting selling on commission and buying on commission checks on the same transactions 

- a deceptive practice.

Murphy Brown, LLC, Warsaw, North Carolina, waived his right to a hearing, entered into a 

stipulation agreement, and paid a penalty of $2,250 after GIPSA found that he failed to fully 

comply with contract language mandated in Sections 208 and 209 of the P&S Act.

E.G. & Perry Huffman, doing business as Huffman Bros. or Huffman Livestock, also known 

as E.G. Huffman and P.J. Huffman, doing business as Huffman Brothers and Huffman 

Livestock, Lexington, Virginia, waived their right to a hearing, entered into a stipulation 

agreement, and paid a penalty of $7,500 after GIPSA found that they failed to pay, when due, 

for livestock. 

Farmland Foods, Inc., Kansas City, Missouri, waived their right to a hearing, entered into 

a stipulation agreement, and paid a penalty of $3,000 after GIPSA found that they failed to 

include proper choice of law and venue in contract and failed to disclose and provide an 

option to decline arbitration in contract.
GIPSA News Release 2010

Page 101

Newkirk Farmers-Ranchers Livestock Auction, LLC, Newkirk, Oklahoma, waived their right 

to a hearing, entered into a stipulation agreement, and paid a penalty of $2,500 after GIPSA

found that they had a custodial account shortage.

4C Livestock, Inc., doing business as Coryell County Commission Co., Gatesville, Texas, 

waived their right to a hearing, entered into a stipulation agreement, and paid a penalty of 

$2,000 after GIPSA found that they had shortages in their custodial account for shippers’ 

proceeds; and misused custodial funds on 11 sale dates by failing to properly reimburse the 

custodial account for livestock purchases by the market and its owners, officers, and their 

dependent children.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries.
GIPSA News Release 2010

Page 102

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 98-10

GIPSA Alleges Michael R. Norris, dba Broken Arrow Cattle Company Violated the Packers and

Stockyards Act

WASHINGTON, Dec. 9, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Michael R. Norris 

(Norris), doing business as Broken Arrow Cattle Company, Unionville, Missouri, operated 

as a market agency without maintaining an adequate bond as required by the Packers and 

Stockyards (P&S) Act and regulations.

GIPSA filed a complaint against Norris November 29, 2010. If the allegations are admitted, or 

proven in an oral hearing, Norris may be ordered to cease and desist from violating the P&S 

Act, suspended and assessed a civil penalty.

Norris engaged in the business of buying and selling livestock in commerce on a commission 

basis; operates as a dealer and market agency, and is registered with the Secretary of 

Agriculture.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 103

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 99-10

GIPSA Alleges Eddie Bennett, dba Preferred Livestock Violated the Packers and Stockyards Ac

WASHINGTON, Dec. 9, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Eddie Bennett 

(Bennett), doing business as Preferred Livestock:

• failed to pay for the full purchase price for livestock within the time period required by the 

Packers and Stockyards (P&S) Act; and

• failed to pay for livestock purchased.

GIPSA filed a complaint against Bennett November 29, 2010. If the allegations are admitted, 

or proven in an oral hearing, Bennett may be ordered to cease and desist from violating the 

P&S Act, suspended and assessed a civil penalty.

Bennett engaged in the business of buying and selling livestock in commerce as a dealer and 

is registered with the Secretary of Agriculture.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 104

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 101-10

GIPSA Alleges Brad Bradley, dba Farm Direct Pork Company, Violated the Packers and 

Stockyards Act

WASHINGTON, Dec. 16, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) has found evidence that Brad Bradley 

(Bradley), doing business as Farm Direct Pork Company, Del Rio, Texas:

• operated subject to the Packers and Stockyards (P&S) Act without being registered and 

maintaining a bond;

• purchased livestock and did not pay the full purchase price for livestock; and

• as of the date of this complaint $187,199.75 remains unpaid to the sellers.

• GIPSA filed a complaint against Bradley on October 10, 2010. If the allegations are 

admitted, or proven in an oral hearing, Bradley may be ordered to cease and desist from 

violating the P&S Act, suspended and assessed a civil penalty.

Bradley engaged in the business of a dealer buying and selling livestock in commerce.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
GIPSA News Release 2010

Page 105

News Release Grain Inspection,

Packers and

Stockyards Administration

STOP 3601

1400 Independence Ave., SW

Washington, D.C. 20250-3601

Web: www.gipsa.usda.gov

Contact: 

Catherine M. Grasso, (202) 720-7201 

Catherine.M.Grasso@usda.gov

Release No.: 102-10

GIPSA Settles Cases Resulting in $9,610 in Civil Penalties

WASHINGTON, Dec. 21, 2010 - The U.S. Department of Agriculture’s Grain Inspection, 

Packers and Stockyards Administration (GIPSA) enforcement rules provide a mechanism 

to quickly resolve violations of the Packers and Stockyards (P&S) Act. GIPSA may offer an 

alleged violator the option of waiving their right to a hearing and entering into a stipulation 

agreement to quickly resolve alleged violations.

GIPSA recently settled cases resulting in $9,610 in civil penalties.

Greg Wersal, dba Wersal Cattle, Morgan Minnesota, waived his right to a hearing, entered 

into a stipulation agreement, and paid a penalty of $3,150 after GIPSA found that he engaged 

in unfair and deceptive practices.

Bryan Bogie, Bryan Bogie Livestock, Inc., Paint Lick, Kentucky, waived his right to a hearing, 

entered into a stipulation agreement, and paid a penalty of $1,500 after GIPSA found that he 

failed to pay when due.

Eugene Barber & Sons, Inc, Lexington, Kentucky, waived his right to a hearing, entered into 

a stipulation agreement, and paid a penalty of $4,960 after GIPSA found that he failed to pay 

before the close of the next business on 17 payment transactions between January 6, 2010 

and March 22, 2010.

The Packers and Stockyards Act is a fair trade practice and payment protection law that 

promotes fair and competitive marketing environments for the livestock, meat, and poultry 

industries..
United States Department of Agriculture

Grain Inspection, Packers and Stockyards Administration

News Release Archive 2010

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, 

the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are 

prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender 

expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance 

program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded 

by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, 

audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA’s TARGET Center at (202) 

720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program 

information may be made available in languages other than English.

To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found 

online at How to File a Program Discrimination Complaint and at any USDA office or write a letter addressed to USDA and 

provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. 

Submit your completed form or letter to USDA by: (1) mail: U.S. Department of Agriculture, Office of the Assistant Secretary 

for Civil Rights, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410; (2) fax: (202) 690-7442; or (3) email: 

program.intake@usda.gov

USDA is an equal opportunity provider, employer, and lender.