The federal government has fined the Lynchburg Livestock Market $10,000 for improperly allowing its bank to use money from a custodial account.
The account is intended to hold money owed to livestock owners and other parties. A federal law governing the industry doesn’t allow custodial funds to be used for other purposes.
Market co-owner and state Del. Matt Fariss tells The News & Advance (http://bit.ly/1CD5hzc ) that the bank was allowed to temporarily use the money in an overnight account that generated interest for both the market and the bank.
Fariss says the market didn’t realize that the money couldn’t be moved from the custodial account.
He says the fine’s amount is about what the market collected in interest.
