WASHINGTON, Dec. 9, 2019 – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on Nov. 7, 2019, the U.S. Department of Agriculture (USDA) issued a complaint against Mike Perschbacher (Perschbacher) of Sulpher, Okla., for alleged violations of the Packers and Stockyards (P&S) Act.
An investigation by USDA’s Agricultural Marketing Service revealed from June 2016 to March 2017, Perschbacher purchased a total of 7,009 head of livestock for $982,448 on a commission basis without obtaining the necessary bond or bond equivalent.
The P&S Act requires that every market agency, packer and dealer must execute and maintain a bond applicable to the activity or activities in which the entity engages to secure their financial obligations. Operating without an adequate bond or bond equivalent is a violation of the P&S Act.
Perschbacher will have 20 calendar days following receipt of the complaint to respond directly to the USDA Administrative Law Judge or be found in violation and subject to penalty.
The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $11,000 per violation against any person after the notice and opportunity for hearing on the record. If the allegations are admitted or proven in an oral hearing, Perschbacher may be ordered to cease and desist from violating the P&S Act and assessed a civil penalty.
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.