AMS enforces U.S. District Court’s order against Tyler D. Gillum and Plainville Livestock Commission Inc. | TheFencePost.com

AMS enforces U.S. District Court’s order against Tyler D. Gillum and Plainville Livestock Commission Inc.

-AMS

WASHINGTON – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, the U.S. Department of Agriculture’s Agricultural Marketing Service has enforced a Consent Decree against Tyler D. Gillum and Plainville Livestock Commission Inc. in Plainville, Kan., for violating the Packers and Stockyards Act. As a result, AMS has imposed the full civil penalty of $117,750 previously agreed to by the violators, and Gillum has surrendered his P&S registration with the secretary of agriculture. Gillum is further barred from seeking registration with the secretary for a period of not less than 10 years from the date of the settlement agreement, and neither Gillum nor Plainville shall manage, own or engage in business as a market agency selling livestock on a commission or agency basis at any time prior to March 21, 2029.

Prior to March 21, 2029, Gillum cannot be employed by, work as a contractor or consultant for, or otherwise work for a market agency selling livestock on a commission or agency basis in any position, role or capacity that requires him to manage, direct, oversee, control or otherwise be responsible for that market agency’s custodial account for shipper’s proceeds or record generating systems.

On July 12, 2018, the U.S. District Court for the District of Kansas entered into a Consent Decree that reflected an agreement between the United States, Plainville and Gillum of Plainville, Kan., a market agency selling livestock on commission subject to the Packers and Stockyards Act. In that Consent Decree, Plainville agreed to suspend its market agency activities for two consecutive, regularly conducted commissioned livestock sales on July 24 and July 31, 2018. It also agreed to pay a civil penalty of $117,750, of which $67,750 was held in abeyance for six years pending Plainville and Gillum’s compliance with the terms and conditions of Consent Decree and the requirements of the P&S Act.

The U.S. Department of Agriculture’s Agricultural Marketing Service subsequently determined however that Plainville and Gillum were violating the P&S Act and the July 12, 2018 Consent Decree. The United States then filed a motion in the U.S. District Court for the District of Kansas to enforce the July 12, 2018, Consent Decree. On March 21, 2019, the court entered an agreed proposed order approved and submitted by the United States, Plainville and Gillum.

On Feb. 25, 2019, the Kansas Livestock Association sent out a press release asking its members who had done business with Plainville Livestock Commission and received insuficient fund checks to report it to the AMS.

“KLA has received numerous calls from members who have received insufficient fund checks originating from Plainville Livestock Commission, Inc. KLA staff was able to determine that Almena State Bank has frozen the custodial account of the market and filed an interpleader case in Norton County District Court to determine all proper claims on the account. Members who have received an insufficient fund check resulting from the sale of cattle at this market should first call the western regional office of the USDA Agricultural Marketing Service, Packers and Stockyards Division at (303) 375-4250 to file a claim against the market’s bond. Affected members should then file a claim in Norton County Case No. 19-CV-02.”

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 P&S Act, contact Stuart Frank, director, PSD, Fair Trade Practices Program, Agricultural Marketing Service, USDA at (515) 323-2586, or by email at stuart.frank@usda.gov.