The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Mark Colgan (Colgan) of Laura, Ill., on May 13, 2023, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Colgan waived its rights to a hearing and paid a civil penalty of $24,000.

An investigation by USDA’s Agricultural Marketing Service (AMS) revealed that from May through July 2021, Colgan instructed posted stockyards to create livestock consignment invoices for 1,104 head of livestock that were never offered for public bid through the ring. Subsequently, Colgan created corresponding purchase invoices showing that the livestock consignments were resold to other individuals.

Instructing others to create false or misleading records is an unfair and deceptive practice in violation of the Packers and Stockyards Act and regulations. The investigation determined that Colgan made an undisclosed profit by creating false and misleading records.

The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $33,896 per violation against any person after notice and opportunity for a hearing on the record. USDA may offer alleged violators the option of waiving their right to a hearing and enter into a stipulation agreement to resolve alleged violations quickly.

The P&S Act is a fair-trade practice and payment protection law that promotes fair and competitive marketing environments for the livestock, meat, and poultry industries.

For further information about the Packers and Stockyards Act, contact Kraig Roesch, Packers and Stockyards Division, at (303) 375-4291 or by email at kraig.roesch@usda.gov.

Original source can be found here.