Yankton Livestock Auction settles USDA complaint
YANKTON (AP) — The Yankton Livestock Auction Market has agreed to pay $2,000 as part of a settlement in a federal complaint that argues the South Dakota group had custodial account shortages.
The Yankton Daily Press and Dakotan reports that each market agency selling livestock on commission, such as Yankton Livestock, must maintain a so-called custodial account that benefits livestock consignors.
The provision was established through the federal Packers and Stockyards Act. The 1921 law was designed to prevent conflicts of interest and market manipulation.
A shortage in a custodial account occurs when the total credits exceed the total debits of the custodial account. Operating with a shortage is a federal violation.
Yankton Livestock has neither agreed nor denied its guilt by agreeing to settle the U.S. Department of Agriculture's complaint.