UNITED STATES DEPARTMENT OF AGRICULTURE

BEFORE THE SECRETARY OF AGRICULTURE

 

In re:

 

 

 

Stephen Smeal and Mendy Smeal, d/b/a Fatted Calf Cattle Farms #6

P&S Docket No. 22-J-0013

P&S Docket No. 22-J-0014

 

 

 

 

Respondents.

 

 

 

Consent Decision and Order

This proceeding was initiated under the Packers and Stockyards Act, 1921, as amended and supplemented (7 U.S.C. § 181, et seq.) (the "Act"), by a Complaint filed on November 30, 2021, by the Deputy Administrator, Fair Trade Practices Program, Packers and Stockyards Division, Agricultural Marketing Service (AMS), United States Department of Agriculture (USDA), alleging that Respondent willfully violated the Act. This consent decision is entered pursuant to the consent decision provision of the Rules of Practice applicable to this proceeding (7 C.F.R. § 1.138).

          Respondents Stephen Smeal and Mendy Smeal, d/b/a Fatted Calf Cattle Farms #6 admit the jurisdictional allegations in paragraph I of the Complaint and specifically admit that the Secretary has jurisdiction in this matter, neither admits nor denies the remaining allegations, waives oral hearing and further procedure, waives all rights to seek judicial review and otherwise challenge or contest the validity of this decision, including waiving challenges to the Administrative Law Judge’s authority to enter this Decision and Order under the Administrative Procedure Act and the Constitution of the United States, and waives any action against the USDA under the Equal Access to Justice Act of 1980 (5 U.S.C. § 504 et seq.) for fees and other expenses incurred by Respondents in connection with this proceeding or any action against any USDA employee in their individual capacity, and consents and agrees, for the purpose of settling this proceeding and for such purpose only, to the entry of this consent decision.

            Complainant agrees to the entry of this consent decision.

Findings of Fact

1.         Respondents Stephen Smeal and Mendy Smeal are individuals and residents of the state of Texas, who are equal partners in a partnership d/b/a Fatted Calf Cattle Farms #6.  Respondents address is not included in this Complaint to protect Respondents’ privacy, but will be provided to the Hearing Clerk, USDA, to effect service.

2.         At all times material herein, Respondents, as equal partners, directed, managed, and controlled Fatted Calf Cattle Farms #6 were:

            (1) Engaged in the business of buying and selling livestock in commerce for Respondents’ own account and for the accounts of others;

            (2) Engaged in the business of a market agency buying livestock on a commission basis; and,

            (3) Registered with the Secretary of Agriculture as a dealer to buy and sell livestock in commerce and as a market agency to buy livestock on a commission basis.

Conclusions of Law

Respondents have admitted the jurisdictional facts and the parties have consented to the issuance of this Consent Decision and Order without further procedure. This Consent Decision and Order shall have the same force and effect as a decision issued after a hearing.

Order

Respondents, their agents and employees, directly or through any corporate or other device, including any successor entities, in connection with their operations subject to the Act, shall cease and desist from failing to pay for the full purchase price of livestock and failing to pay, when due, the full purchase price of livestock (in other words, be in compliance with the Act if and when it engages in activities governed by the Act in the future).

In accordance with 7 U.S.C. § 204, Respondents are suspended as registrants under the Act for a period of seven days. The suspension shall begin on July 17, 2022 and end on July 24, 2022. During this suspension, Respondents are prohibited from operating in any capacity for which registration and bond is required under the Act.

In addition, and in accordance with 7 U.S.C. § 213(b), Respondents are assessed a civil penalty in the amount of thirteen thousand dollars ($13,000.00) (the “Civil Penalty”). Five days after the entering of this Consent Decision and Order, Respondents agree to pay two thousand dollars ($2,000) toward the Civil Penalty in a lump sum. The remaining eleven thousand dollars ($11,000) of the Civil Penalty will be paid in 11 monthly installments ($1,000.00 per month), with the first installment due on July 1, 2022. As for the method of payment of the Civil Penalty, payments may be made by certified check or money order made payable to the Treasurer of the United States and sent to USDA, AMS, FTPP, PSD, P.O. Box 0790304, St. Louis, MO 63197-9000. The certified check or money order shall include the docket number of this proceeding, Docket Nos. 22-J-0013 and 22-J-0014. Payment may also be made through Pay.Gov, which can accommodate a payment plan and ACH bank transfers.

In the event that Respondents violate the Act at anytime during the 7 day suspension period, then any outstanding balance of the Civil Penalty will become immediately due and payable.

Respondents shall comply with all registration requirements under the Act, in connection with their future operations subject to the Act. This Consent Decision and Order shall become effective and final upon issuance, as if entered after a full hearing. Copies of this Consent Decision and Order shall be served on the Respondents and Complainant.

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