Thomas D. Unger
The U.S. Department of Agriculture issued a complaint against Thomas D. Unger, Earlville, N.Y., on July 12, 2023, for alleged violations of the Packers and Stockyards (P&S) Act.
An investigation by USDA’s Agricultural Marketing Service revealed that Unger failed to pay timely for 96 head of cattle, valued at $90,922 at New Holland Sales Stables Inc., New Holland, Pa., in August and September 2020. Unger issued two checks in payment for the livestock that were returned unpaid by the bank. As of the complaint’s filing date, Unger has an unpaid balance of $38,944.
The P&S Act requires subject entities to issue full payment for livestock by the close of the first business day following purchase and transfer of possession. Failure to timely pay for livestock purchases and failure to issue the full payment for purchases is an unfair trade practice and a violation of the P&S Act.
The P&S Act authorizes the secretary of agriculture to assess civil penalties, up to $33,896 per violation, against any person after notice and opportunity for a hearing on the record. If the allegations are admitted or proven in an oral hearing, Unger may be ordered to cease and desist from continuing violations of the P&S Act and assessed a civil penalty.
The P&S Act is a fair-trade practice and payment-protection law that promotes fair and competitive marketing environments for the livestock, meat and poultry industries.
Ravenna Auction LLC and Laverne Lettinga
The USDA issued an administrative complaint against Ravenna Auction LLC and its owner, Laverne Lettinga of Ravenna, Mich., on July 12, 2023, for alleged violations of the Packers and Stockyards Act.
An investigation by USDA’s Agricultural Marketing Service revealed that Ravenna and Lettinga failed to properly maintain its custodial account, resulting in custodial shortages of $538,735 on Dec. 31, 2019, $360,943 on Jan. 31, 2020, and $307,093 on Feb. 28, 2020. The shortages were due, in part, to misuse and failure to deposit into the custodial account an amount equal to the proceeds received from the sale of consigned livestock.
A custodial account is a trust account designated for shippers’ proceeds from the sale of livestock in trust for sellers. Failure to reimburse the custodial account timely is a violation of the Packers & Stockyards Act and regulations.
If the allegations are admitted or proven in an oral hearing, Ravenna and Lettinga may be ordered to cease and desist from violating the P&S Act and assessed a civil penalty.
For further information about the Packers and Stockyards Act, contact Dora Malykin, Packers and Stockyards Division, at 202-720-7051 or by email at dora.malykin@usda.gov.
Source: USDA's AMS
