UNITED STATES DEPARTMENT OF AGRICULTURE
BEFORE THE SECRETARY OF AGRICULTURE
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In re: |
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Lake
Odessa Livestock Auction, Inc. and
Laverne
Lettinga, |
P&S Docket No. 23-J-0078 P&S Docket No.
23-J-0079 |
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Respondents |
Consent Decision
and Order |
This proceeding was
instituted under the Packers and Stockyards Act, 1921, as amended and
supplemented (7 U.S.C. § 181 et seq.) (Act), by a Complaint filed
by the Deputy Administrator, Fair Trade Practices Program, Agricultural
Marketing Service (AMS), United States Department of Agriculture, alleging that
the Respondent willfully violated the Act and the regulations promulgated
thereunder (9 C.F.R. § 201.1 et seq.). This 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 the complaint and specifically admits
that the Secretary has jurisdiction in this matter, admit the remaining
allegations as set forth herein as findings of fact and conclusions of law,
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 Decision and Order under the Administrative Procedure Act and the
Constitution of the United States, and waive any action against the United
States Department of Agriculture 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.
Respondents
consent and agree, for the purpose of settling this proceeding, to the entry of
this decision. Complainant agrees
to the entry of this decision.
FINDINGS OF FACT
1. Respondent
Lake Odessa Livestock Auction, Inc. (Respondent Lake Odessa) is a limited
liability company organized under XXXXX law. Respondent Lake Odessa’s business
address is XXXXX, and its mailing address is XXXXX.
2. Respondent Lake
Odessa is, and at all times material herein was:
a)
Engaged
in the business of a market agency selling livestock in commerce on a
commission basis; and
b) Registered
with the Secretary of Agriculture as a market agency to sell livestock in
commerce on a commission basis.
3. Laverne
Lettinga (Respondent Lettinga) is an individual whose current address is in the
State of Michigan. Respondent
Lettinga’s address is not stated in this Consent to protect privacy, but has
been provided to the Hearing Clerk’s Office, United States Department of
Agriculture, for the purpose of service of filings in this matter.
4. Respondent Lettinga
is, and at all times material herein was:
a) the
99.5 or 100 percent owner of Respondent Lake Odessa;
b) responsible
for the management, direction, and control of Respondent Lake Odessa; and
c) a
market agency withing the meaning of and subject to the provisions of the Act
and regulations.
CONCLUSIONS
OF LAW
Respondents
having admitted the jurisdictional facts and the parties having agreed to the
entry of this decision, such decision will be entered.
ORDER
1.
Respondents, their agents
and employees, directly or through any corporate or other device, in connection
with operations subject to the Act, shall cease and desist from:
a) Failing
to maintain a custodial account for shippers’ proceeds (custodial
account) in accordance with the regulations
attendant to the Act. 9
C.F.R. § 201.42(b);
b) Failing
to deposit into the custodial account an amount equal to the proceeds
receivable from the sale of consigned livestock in accordance with and within
the time limits prescribed by 9 C.F.R. § 201.42, and failing to make up any
custodial shortfall and reimburse the custodial account for unpaid receivables;
c) Failing
to withdraw funds from its custodial account only for the following
reasons: (a) to pay the net proceeds of a livestock sale to a consignor or
shipper, (b) to pay lawful charges against the consignment of livestock, and
(c) to obtain sums due the market agency as compensation for its services. 9
C.F.R. § 201.42(d).
2.
Respondent Lettinga is
suspended pursuant to 7 U.S.C. § 204 from any and all
operations subject to the Act and regulations, for a period of 5 years,
beginning upon execution of this Consent Decision.
3.
Respondents shall, within 5 business days
of the execution of this Consent Decision and Order, establish a new custodial
account and from that date conduct all custodial account transactions through
the new account. Within 30 days
from the date of this Consent Decision and Order, Respondents shall provide an
accounting demonstrating that the old custodial account is in balance in
accordance with the Act or determine a shortfall amount to be funded within 30
days of the accounting.
The provisions of this
Order shall become effective upon issuance. Copies of this decision shall be
served upon the parties.
______________________
Respondent XXXXX Lettinga
_______________________
Respondent Lake
Odessa Livestock Auction, Inc.
By: XXXXX Lettinga
Its: President
.
________________________
Michelle McMurtray
Attorney for
Complainant
Done
at Washington, D.C.
this
2nd day of January , 2024
_____________________________
Channing
Strother
Chief Administrative
Law Judge