CSA Canadian Securities Administrators : USDA Reaches a Consent Decision and Civil Penalty with Sugarcreek Livestock Auction Inc. and Leroy H. Baker Jr., for P&S Act Violations

Release No.: 020-20

WASHINGTON, Jan. 27, 2020 - As part of its commitment to ensuring fair and competitive markets for the livestock, meat, and poultry industries, on Jan. 7, 2020, the United States Department of Agriculture (USDA) reached a consent decision against Sugarcreek Livestock Auction Inc. (Sugarcreek) and Leroy H. Baker, Jr., (Baker) of Sugarcreek, Ohio, for alleged violations of the Packers and Stockyards (P&S) Act. The Decision and Order became final and effective on Jan. 13, 2020.

An investigation by USDA's Agricultural Marketing Service (AMS) resulted in the issuance of an administrative complaint on May 14, 2019. The complaint alleged that Sugarcreek and Baker failed to properly use and maintain its custodial account resulting in custodial shortages of $116,392 on March 31, 2018, and $64,679 on April 30, 2018; failed to pay $627,306 when due as full purchase price of livestock from March 1, 2018, through April 28, 2018; issued insufficient funds checks for $277,705 as payment for livestock; and operated while insolvent in approximate amounts of $91,372 on March 31, 2018, and $166,065 on April 30, 2018.

Under the consent decision, Sugarcreek and Baker were ordered to cease and desist from violating the P&S Act, jointly assessed a civil penalty of $39,000 and suspended for 14 days. AMS will hold the suspension and $24,000 of the civil penalty in abeyance for 2 years, from Jan. 13, 2020, through Jan. 13, 2022. If during the 2-year period, AMS determines that Sugarcreek and Baker failed to make any required civil penalty payment(s) and/or violates the P&S Act, the Agency may seek full and immediate payment of the remaining civil penalty and immediately impose the 14-day suspension of Sugarcreek's registration without any future proceedings.

The Packers and Stockyards Division, which is in the AMS Fair Trade Practices Program, administers the P&S Act, 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 P&S Act, contact Stuart Frank, Director, Packers and Stockyards Division, Fair Trade Practices Program, at [phone], or by email at [e-mail].

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