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Latest on Eastern Livestock Company Failure

November 22, 2010
 
 

EasternCattleMap BTonline

Far Reaching Impact: Eastern Livestock Company LLC has written bad checks to 743 individuals in 30 states.

The U.S. Department of Agriculture’s Grain Inspection, Packers and Stockyards Administration on Friday November 19, 2010 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
  • failure to maintain an adequate bond


Eastern Livestock Company 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. 

Outline of events:

1. On November 3, 2010, a livestock seller complained to GIPSA that a payment check received for livestock sold to Eastern had been returned due to insufficient funds.

2. On November 4, 2010, GIPSA deployed investigators to Eastern’s headquarters to investigate the original and subsequent complaints of failure to pay for livestock.  GIPSA also began deploying rapid response teams to markets nationwide that could be impacted by Eastern’s financial failure. The Agency also began issuing letters to unpaid sellers encouraging affected producers to submit bond claims. As of November 17, 2010, GIPSA issued 743 letters.

3. On November 9, 2010, USDA issued a news release, Bond Information for Producers Who Sold Livestock to Eastern Livestock Company, LLC, explaining the situation and providing information on how to file bond claims under the Packers and Stockyards Act.  

4. On November 9, 2010, Fifth Third Bank filed a motion with the Hamilton County Court of Common Pleas in Ohio requesting issuance of a temporary restraining order and the appointment of a receiver.  The court appointed Elizabeth M. Lynch, of Development Specialists Inc., of Cleveland, Ohio, as receiver to work on behalf of Eastern’s creditors, among which Fifth Third Bank is the secured creditor. The court also granted a temporary restraining order enjoining Eastern’s access to and dissipation of its financial assets.

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RELATED TOPICS: Beef, Marketing, Livestock, GIPSA

 
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COMMENTS (1 Comments)

Stockdog - OK
Thomas P Gibson, trying to stay out of jail for writing hot checks filed a personal Chapter 7 bankruptcy. He listed 1 to 10 million in assets and 10 to 50 million in debts. Gibson also filed chapter 7 bankruptcy on his trucking firm East-West Trucking. This fraudster will eventually be put in jail but it will take some time. Folks dont expect any money from Gibson or Eastern Livestock.

12:38 PM Dec 4th
 



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