Cite as 24 A.D. 767 ORDER AUTHORIZING WITHDRAWAL In this proceeding under section 8c (15) (A) of the Agricultural Adjustment Act (1933), as reenacted and amended by the Agricultural Marketing Agreement Act of 1937 and subsequent amendments (7 U.S.C. 601 et seq.), petitioner requested permission May 27, 1965, to withdraw the petition and respondent has no objection thereto. Accordingly, the petition is considered withdrawn. (No. 9881) In re ADAMSON DAIRY, INC. AMA Docket No. M 33-1. Decided June 21, 1965. Stay order-Pending issuance of further order Decision by Thomas J. Flavin, Judicial Officer STAY ORDER In this proceeding under section 8c (15) (A) of the Agricultural Adjustment Act (1933), as reenacted and amended by the Agricultural Marketing Agreement Act of 1937 and subsequent amendments (7 U.S.C. 601 et seq.), an order was issued June 4, 1965, denying part of the relief requested in the petition. On June 21, 1965, petitioner filed a timely petition to reconsider the order of June 4, 1965. Accordingly, the order of June 4, 1965, is hereby stayed pending the issuance of a further order in this proceeding. (No. 9882) In re RICHMOND LEE HOWELL. P&S Docket No. 3480. Decided June 2, 1965. Bonding requirements-Failure to pay when due-Checks-Records Insolvency-Suspension of registration-Consent Respondent is ordered to cease and desist from engaging in business under the act without the required bond, failing to pay when due for purchased livestock and issuing insufficient funds checks in payment of purchased livestock, is ordered to keep records that fully disclose all transactions in his business under the act and is suspended as a regis Cite as 24 A.D. 767 trant until he demonstrates that he is no longer insolvent and complies fully with the bonding requirements. The suspension is held in abeyance so long as respondent does not engage in business as a market agency or dealer under the act. Mr. Donald E. Graham for complainant. Respondent pro se. Decision by Thomas J. Flavin, Judicial Officer PRELIMINARY STATEMENT This is a disciplinary proceeding under the Packers and Stockyards Act, 1921, as amended and supplemented (7 U.S.C. 181 et seq.), instituted by a Complaint filed on March 12, 1965, by the Acting Director, Packers and Stockyards Division, Consumer and Marketing Service, United States Department of Agriculture. The respondent is registered with the Secretary of Agriculture as a dealer under the Act. The Complaint charges that the respondent's financial condition does not meet the requirements of the Act and that respondent violated certain provisions of the Act and the regulations issued thereunder. On May 12, 1965, respondent filed an answer in which he admits the jurisdictional allegations of the Complaint, neither admits nor denies the remaining allegations set forth in the Complaint, waives oral hearing and the Examiner's Report, and consents to the issuance of a specified order containing findings of fact and conclusions based upon the allegations set forth in the Complaint. Complainant has recommended that the order consented to by respondent be issued. FINDINGS OF FACT 1. Respondent, an individual residing at Laurinburg, North Carolina, is now and was at all times material herein engaged in the business of a dealer buying and selling livestock in commerce for his own account and is now and was at all times material herein so registered with the Secretary of Agriculture. 2. Respondent's surety bond was terminated on November 24, 1963. By letters dated November 5, 1963, and May 6, 1964, the officials who administer the Packers and Stockyards Act notified respondent of such termination date and informed him that he would have to furnish the required bond if he continued to operate as a registrant under the Act. Notwithstanding said notices, respondent continued to engage in the business of a dealer, buy Cite as 24 A.D. 767 ing and selling livestock in commerce, without filing and maintaining a reasonable bond or its equivalent as required by the Act and the regulations. 3. Respondent's current liabilities exceed his current assets. As of February 10, 1965, respondent's current liabilities exceeded his current assets by approximately $8,871.20. 4. Respondent, on or about the dates and in the transactions set forth in paragraph IV of the Complaint, purchased livestock in commerce for his own dealer account and failed to pay, when due, the purchase price of such livestock. 5. Respondent, in connection with the transactions set forth in paragraph IV of the Complaint, issued checks in purported payment for the livestock purchased, which checks were returned by the bank upon which they were drawn because of insufficient funds in respondent's account. 6. Respondent, during the period from October 29, 1964, through February 10, 1965, failed to keep accounts, records, and memoranda which fully and correctly disclosed all transactions involved in his business as a dealer under the Act. Respondent, during such period, failed to keep: (a) a general ledger of accounts showing assets, liabilities, income, expenses, and net worth, (b) a purchase and sales journal showing the number of head, weight, price and related expenses, of all livestock bought, sold or otherwise disposed of each business day, (c) monthly reconciliations of bank accounts, and (d) cash receipts and disbursements journals. CONCLUSIONS By reason of the facts set forth in Finding of Fact 3 hereof, it is concluded that respondent is insolvent within the meaning of the Act (7 U.S.C. 204). By reason of the facts set forth in Findings of Fact 2, 4, 5, and 6, it is concluded that respondent has wilfully violated sections 312 and 401 of the Act (7 U.S.C. 213, 221) and sections 201.29, 201.30, and 201.43 (b) of the regulations (9 CFR 201.29, 201.30, and 201.43 (b)). Respondent has consented to the issuance of the order set forth below and complainant has recommended that such order be issued. The order will be issued. Cite as 24 A.D. 767 ORDER Respondent shall cease and desist from (1) engaging in business, in commerce, in any capacity for which bonding is required under the Act and the regulations, without filing and maintaining a reasonable bond or its equivalent, as required by the Act and the regulations; (2) failing to pay, when due, the full purchase price of livestock purchased in commerce; and (3) issuing checks in payment for livestock purchased in commerce without having and maintaining sufficient funds on deposit in the bank upon which they are drawn to pay such checks. Respondent shall keep and maintain such accounts, records, and memoranda as will fully and correctly disclose all transactions involved in his business as a dealer under the Act, including (a) a general ledger including accounts showing assets, liabilities, income, expenses and net worth, (b) a purchase and sales journal showing the number of head, weight, price and related expenses, of all livestock bought, sold or otherwise disposed of each business day, (c) monthly reconciliations of bank accounts, and (d) cash receipts and disbursements journals. Respondent is suspended as a registrant under the Act until such time as (1) he demonstrates that he is no longer insolvent; and (2) he complies fully with the bonding requirements of the Act and the regulations. When respondent (1) has complied fully with the bonding requirements of the Act and the regulations, and (2) demonstrates that he is no longer insolvent, at the request of the respondent, a supplemental order will be issued in this proceeding terminating this suspension. However, the suspension of respondent shall be held in abeyance and shall not become effective so long as respondent does not engage in the business of buying or selling in commerce livestock as a market agency or a dealer under the Act. This order shall become effective on the sixth day after service upon respondent and copies hereof shall be served upon the parties. Cite as 24 A.D. 771 (No. 9883) In re LEONARD WILLIAM SMOTHERS. P&S Docket No. 3450. Decided June 2, 1965. Bonding requirements-Suspension of registration Respondent is ordered to cease and desist from engaging in business under the act without the required bond and is suspended as a registrant under the act until he complies fully with the bonding requirements of the act and the regulations. Mr. Garrett N. Wyss for complainant. Mr. Charles Ozmun, Lawton, Okla., for respondent. Mr. Will Rogers, Hearing Examiner. Decision by Thomas J. Flavin, Judicial Officer DECISION AND ORDER The recommended decision and order of the hearing examiner filed April 23, 1965, to which respondent did not file exceptions, are adopted as the final decision and order in this proceeding. This order shall become effective on the 6th day after service thereof upon respondent and copies hereof shall be served upon the parties. HEARING EXAMINER'S RECOMMENDED DECISION AND ORDER PRELIMINARY STATEMENT This is a disciplinary proceeding under the Packers and Stockyards Act, 1921, as amended and supplemented (7 U.S.C. et seq.), hereinafter referred to as the act, instituted by a complaint filed on January 11, 1965, by the Director, Packers and Stockyards Division, Agricultural Marketing Service, United States Department of Agriculture, charging the respondent, a registrant with the Secretary as a dealer under the act, with operating as a dealer, without bond coverage, after notification that his bond had been terminated, in violation of the bonding requirements of the act and the regulations. It is alleged that the respondent, Leonard William Smothers, an individual whose address is 911 Monroe Street, Lawton, Oklahoma, is now and was at all times material herein engaged in the business of a dealer buying and selling in commerce livestock on his own account and is now and was at all times material herein so registered with the Secretary of Agriculture. The respondent is charged with violating section 312(a) |