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GIPSA uncovers string of false invoices at livestock auction markets
Story Date: 12/18/2012
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Source: Rita Jane Gabbett, MEATINGPLACE, 12/17/12
USDA’s Grain Inspection, Packers and Stockyards Administration (GIPSA) has found evidence in 12 separate cases of fraud including 7 livestock auctions and 5 dealers, and assessed over $200,000 in civil penalties in a continuing 18-month investigation into schemes to falsify the selling price of livestock at livestock auction markets.
“Federal regulations require that livestock auction markets, and individuals who buy on commission for someone else, keep and provide true written accounts of the transaction to the sellers and buyers,” said GIPSA Administrator Larry Mitchell. “We continue to investigate evidence of fraud and any allegations of anti-competitive behavior in the livestock, meat and poultry industries, and aggressively enforce the P&S Act when we find them.”
GIPSA activities over the last 18 months, among others, include:
GIPSA recently assessed a $75,000 civil penalty assessed against the New Holland Sales Stables, Inc. (New Holland), in New Holland, Pa. In its complaint, GIPSA alleged that during a 3-month period, New Holland issued 109 false invoices to approximately 21 different buyers. Failure by New Holland to comply with the consent decision’s order to cease and desist from violating the P&S Act could result in suspension of its operations for 180 days.
On Nov. 8, 2012, United Producers Inc. (UPI), agreed in a consent decision to pay a civil penalty of $110,000 to resolve a complaint GIPSA filed against it on Sep. 14. GIPSA’s complaint alleged that UPI created false invoices for livestock sold to two dealers.
On April 27, 2012, GIPSA filed a complaint against the Milan Livestock Auction, Inc., Brookfield, Mo., for creating false invoices.
Separately, four livestock auctions have settled with GIPSA through stipulation agreements and payment of fines. Those auctions are Lolli Brothers Livestock Market, Macon, Mo.; Kingsville Livestock Auction, Kingsville, Mo.; Appanoose County Livestock, Inc., Centerville, Iowa; and the Russell Livestock Market, Russell, Iowa.
Additionally, three dealers found to be involved in false invoice schemes have been fined; Ronald Wayne Kitchen of Huntsville, Mo., was ordered to pay a $7,975 civil penalty and restitution to Laura’s Lean Beef in the amount of $2,025; and Chad Duncan, Brunswick, Mo., was ordered to pay a $7,250 civil penalty and $3,265 in restitution. Chris Arnaman of Cameron, Mo., paid $2,425 pursuant to a stipulation agreement.
Complaints have also been filed against T&M Cattle, Inc. and Travis Witt, Falls City, Neb., and Monty Witt, also of Falls City, Neb.
For more stories, go to http://www.meatingplace.com/.
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