WASHINGTON – The US Department of Agriculture recently announced that it entered a stipulation agreement with Elkhart, Texas-based Anderson County Livestock Exchange LLC (ACLE) over alleged violations of the Packers and Stockyard Act.

ACLE said it waived its rights to a hearing and paid a penalty of $4,000.

An investigation by the Agricultural Marketing Services (AMS) showed that ACLE had custodial account shortages on Nov. 12, 2021, and Dec. 21, 2021, of $374,960 and $382,140 respectively. The agency said both custodial account shortages occurred because ACLE failed to reimburse the custodial account in time for receivables.

“A custodial account is a trust account designated for shippers’ proceeds from the sale of livestock in trust for sellers,” AMS said in its release. “Failure to reimburse the custodial account timely is a violation of the Packers & Stockyards Act and regulations.”

The P&S Act allows the Agriculture Secretary to assess civil penalties up to $31,459 per violation against any person after notice and opportunity for hearing on the record.

USDA said it might offer alleged violators the option of waiving their right to a hearing and entering into a stipulation agreement to resolve allegations quickly.