21-J-0004, 05, 06 ML Farms, Jallaq Farms, O. Jallaq Amended CD 1-12-23.htm

UNITED STATES DEPARTMENT OF AGRICULTURE

BEFORE THE SECRETARY OF AGRICULTURE

In re:
	M&L Farms, LLC;	P&S Docket No. 21-J-0004
	Jallaq Farms, LLC; and	P&S Docket No. 21-J-0005
	Othman Jallaq,	P&S Docket No. 21-J-0006

	Respondents.

(Amended) Consent Decision and Order

This proceeding was instituted under the Packers and Stockyards Act (7 U.S.C. § 181 et seq.)(the Act), by a Complaint filed on November 12, 2020 by the Deputy Administrator, Packers and Stockyards Division (PSD), Fair Trade Practices Program Agricultural Marketing Service (AMS), United States Department of Agriculture (USDA), alleging that M&L Farms, LLC, Jallaq Farms, LLC, and Othman Jallaq (Respondents) willfully violated the Act (7 U.S.C. § 181 et seq.) and the regulations promulgated thereunder by the Secretary of Agriculture (9 C.F.R. § 201.1 et seq.)(the regulations). This Consent Decision and Order is entered pursuant to the consent decision provision of the Rules of Practice applicable to this proceeding (7 C.F.R. § 1.138).

Respondents admit the jurisdictional allegations in paragraph I of the Complaint and specifically admit that the Secretary has jurisdiction in this matter, neither admit nor deny the remaining allegations, waive oral hearing and further procedure; waive 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 Consent Decision and Order under the Administrative Procedure Act and the Constitution of the United States, and waive 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. The parties consent and agree, for the purpose of settling this proceeding and for such purpose only, to the entry of this Consent Decision and Order.

Findings of Fact

1. Respondent M&L Farms, LLC (Respondent M&L) is a domestic limited liability company with a mailing address and principal place of business of 5463 Harrisburg Pike, Grove City, Ohio 43123. Respondent is a packer operating in commerce subject to the provisions of the P&S Act, 7 U.S.C. § 181 et seq.

2. Respondent Jallaq Farms, LLC (Respondent Jallaq Farms) is a domestic limited liability company with a mailing address and principal place of business of 5463 Harrisburg Pike, Grove City, OH 43123. Respondent is a packer operating in commerce subject to the provisions of the P&S Act, 7 U.S.C. § 181 et seq.

3. Respondent Othman Jallaq (Individual Respondent) is an individual with a current mailing address of XXXXX. Individual Respondent is, and at all times material herein, was:

(a) The owner and 100% shareholder, incorporator and registered agent of M&L Farms, LLC and Jallaq Farms, LLC;

(b) Responsible for the direction, operation and control of Respondent M&L and Respondent Jallaq Farms, including purchase of all livestock and the payment of all debts; and

Conclusions

Respondents (collectively Respondent M&L, Respondent Jallaq Farms and Individual Respondent) having admitted the jurisdictional facts and the parties having agreed to the entry of this Consent Decision and Order, such decision will be entered.

Order

Respondents, their agents and employees, directly or through any corporate or other device, in connection with operations subject to the Packers and Stockyards Act, shall cease and desist from:

1. Failing to pay and failing to pay, when due, the full purchase price of livestock;

2. Issuing checks to livestock sellers without having sufficient funds in the bank upon which they were drawn to pay such checks when presented;

3. Operating while insolvent. Respondents shall pay for all livestock purchases with cash, cashiers’ check, certified check, or wire transfer of funds at time of exchange of possession until Respondents demonstrate to Complainant’s satisfaction Respondents have corrected their insolvency. To determine Respondents are operating as solvent, Respondents must provide Complainant’s counsel, immediately upon execution of this instant Consent Decision and Order with:

(a) A completed PSD-7002 Statement of Assets, Liabilities, and Equity Special

Report form as of August 31, 2022, and

(b) Any business specific loan documents related to long-term debt and history reports for such loans for the period of March 1, 2022-August 31, 2022.

Based on these documents, the PSD-AMS Midwestern Regional Office will determine if additional documentation for verification of solvency is necessary. Respondents must furnish any additional documentation requested by Complainant for the purposes of demonstrating solvency in conformance with this Consent Decision and Order within one week (seven calendar days) of such request.

4. Failing to maintain adequate records in accordance with the Act. Respondents are ordered to maintain accounts, records, and memoranda as fully and correctly disclose all transactions involved in its business, as required by section 401 of the Act, specifically: Respondents shall maintain and keep a written record of all outstanding checks, bank reconciliations, tracking of cash or cash equivalents, and balance sheets. (7 U.S.C. § 221).

In accordance with section 203 of the Act (7 U.S.C. § 193), Respondents are jointly and severally assessed a civil penalty in the amount of Twenty-six thousand dollars ($26,000.00).

A portion of the civil penalty, in the amount of twenty-two thousand one-hundred dollars ($22,100.00) however, will be held in abeyance for a period of 20-months (abeyance period) so long as Respondents satisfy the terms in numbered paragraphs 1-4 enumerated above. The Respondents shall pay a civil penalty of $3,900.00 (active portion), to be paid in full over the course of the abeyance period ($195/month, subject to interest and penalties). The first monthly payment of the $3,900.00 active portion of the civil penalty is to be due immediately upon execution and filing of this Consent Decision and Order. Respondents may pay the $3,900 active portion of the civil penalty in advance of the termination of the abeyance period. If Respondents fail to satisfy the terms of this Consent Decision and Order, the entire civil penalty—the $22,100.00 held in abeyance and any remainder of the $3,900.00 active portion—will become due in full immediately upon application of Complainant to the Administrative Law Judge, without any additional further procedure.

Respondents shall send cashiers’ check(s), certified check(s) or money order(s) and reference on each the designation “P&S Docket Nos. 21-J-0004, 21-J-0005, 21-J-0006,” made payable to the U.S. Treasury and mailed to USDA-AMS-FTPP-PSD, P.O. Box 790312, St. Louis, Missouri 63197-0312. Payment may also be made through Pay.Gov, which can accommodate a payment plan and ACH bank transfer(s), credit/debit card payment(s), and PayPal and Amazon payment(s).

The Administrative Law Judge shall retain jurisdiction in this matter for the purpose of assessing the appropriate civil penalty, upon application of the Complainant as described herein.

The provisions of this order shall become effective on the sixth day after service of this order on the Respondent.

Copies of this Consent Decision and Order shall be served upon the parties.

(Signature Page Omitted)