Eastern Livestock Company Fails To Pay Up

US - A complaint has been filed against the Eastern Livestock Company, which it is estimated owes more than $130 million to 743 sellers in 30 states.
calendar icon 23 November 2010
clock icon 2 minute read

The US Department of Agriculture's Grain Inspection, Packers and Stockyards Administration (GIPSA) has filed an administrative complaint charging Eastern Livestock Company, LLC, and Tommy P. Gibson of New Albany, Indiana, with:

  • failure to pay for livestock purchases;
  • failure to pay timely for livestock purchases; and
  • failure to maintain an adequate bond.

Eastern Livestock Company (Eastern) is one of the largest cattle brokerage companies in the United States, with operations in 11 states across the Mid-South, Midwest, and West.

"We take very seriously our responsibility to ensure that producers receive all protections afforded them by law and we will be working closely with the Department of Justice and law enforcement officials in the weeks and months ahead, " said John Ferrell, Deputy Under Secretary for Marketing and Regulatory Programs.

GIPSA currently estimates that Eastern owes more than $130 million to 743 sellers in 30 states. As of today, the agency has documented $81 million in returned checks and is currently onsite at Eastern's headquarters assessing the situation, investigating possible violations of the Packers and Stockyards Act, and working to ensure that all available protections are afforded to producers.

The investigation began in early November, when a livestock seller complained to GIPSA that a payment check received for livestock sold to Eastern had been returned due to insufficient funds.

Producers who have not received payment due from Eastern are encouraged to contact the GIPSA Midwestern Regional Office, Des Moines, Iowa, at telephone 515-323-2579 for complete information on available financial protections, and for forms necessary for filing a bond claim on payments due from Eastern.

Bond claims must be filed within 60 days from the date of the transaction on which the claim is based.

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