AMS issues complaint against Quinter Livestock Market LLC and Clint Kvasnicka of Kan.
WASHINGTON – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on May 7, 2019, the U.S. Department of Agriculture’s Agricultural Marketing Service issued an administrative complaint against Quinter Livestock Market LLC of Quinter Kan., and Clint Kvasnicka of Kansas, for alleged violations of the Packers and Stockyards Act.
An investigation by AMS revealed Quinter and Kvasnicka failed to properly use and maintain its custodial account, endangering the faithful and prompt accounting of shippers’ proceeds and payments due the owners or consignors of livestock. AMS’ investigation revealed custodial shortages of $61,163 on Oct. 31, 2017; $140,173 on May 18, 2018; $108,974 on Jun. 30, 2018, and $24,231 on Nov. 30, 2018.
The shortages in Quinter’s custodial account were due, in part, to failure to deposit into the custodial account an amount equal to the proceeds receivable from the sale of consigned livestock. Quinter and Kvasnicka also misused the custodial account by permitting $9,411 in bank fees to be charged to the account, which also attributed to the shortages.
Additionally, from July 10, 2017, through Aug. 21, 2017, Quinter and Kvasnicka issued eight insufficient funds checks to livestock sellers totaling $142,889.
A custodial account is a trust account that is a separate bank account designated for shippers’ proceeds. Operating with custodial account shortage and custodial account misuse is a violation of the P&S Act and places livestock sellers at risk of not being paid timely or at all. Payment for all livestock is due before the close of the business day following the purchase and transfer of possession of the livestock. Failure to pay when due for livestock is a violation of the P&S Act and places livestock sellers at risk of not being paid timely or at all.
Quinter and Kvasnicka will have 20 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 $28,061 per violation against any person after notice and opportunity for hearing on the record. If the allegations are admitted, or proven in an oral hearing, Quinter and Kvasnicka 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.
For further information about the Packers and Stockyards Act, contact Stuart Frank, Packers and Stockyards Division, at (515) 323-2586, or by email at email@example.com.