UNITED STATES DEPARTMENT OF AGRICULTURE
BEFORE THE SECRETARY OF AGRICULTURE
In re: |
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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 |
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Respondents. |
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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.
[Signature Page Omitted]