The U.S. Department of Agriculture entered into a stipulation agreement with Warren E. Hudspeth of Pilot Point, Texas, on Feb. 14, 2024, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Hudspeth waived his rights to a hearing and paid a civil penalty of $660.
An investigation by USDA’s Agricultural Marketing Service revealed that between August 2022 and October 2023, Hudspeth failed to pay timely for the full purchase price of 331 head of livestock totaling $128,659.05. Payments were up to 19 days late.
The P&S Act requires subject entities to issue the 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 is 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. USDA may offer alleged violators the option of waiving their right to a hearing and enter into a stipulation agreement to resolve the alleged violations quickly.
The P&S Act is a fair-trade practice and payment-protection law that promotes fair and competitive marketing environments for the livestock, meat and poultry industries.
For further information about the Packers and Stockyards Act, contact Dora Malykin, Packers and Stockyards Division, at 202-720-7051 or by email at dora.malykin@usda.gov.
The U.S. Department of Agriculture entered into a stipulation agreement with Cabritos Garza Corp. of Humble, Texas, on Feb. 7, 2024, for alleged violations of the Packers and Stockyards Act. Under the terms of the stipulation agreement, Cabritos waived its rights to a hearing and paid a civil penalty of $7,500.
An investigation by USDA’s AMS revealed that between February 2023 and June 2023, Cabritos failed to pay timely for the full purchase price of 2,098 head, totaling $506,238.72. Payments were up to 21 days late. Additionally, during the same period, Cabritos issued two nonsufficient funds checks for $45,593.00, which were later reissued and deposited.
Failure to timely pay for livestock purchases and issuing nonsufficient funds checks are violations of the P&S Act.
The U.S. Department of Agriculture issued a complaint against Austin Lambrich of Geff, Ill., on Feb. 5, 2024, for alleged violations of the Packers and Stockyards Act.
An investigation by USDA’s Agricultural Marketing Service revealed that between June 15 and Aug. 26, 2020, Lambrich failed to pay timely for 244 head of livestock totaling $150,758.57. Payments ranged from three to 20 days late. In one of those transactions, on June 22, 2020, Lambrich issued a $6,587.40 check, which was returned unpaid for nonsufficient funds.
Source: USDA's AMS
