WASHINGTON, Sept. 17, 2025 – The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Cox Livestock Inc. dba Cedar Livestock Market and Duke Cox (Cox) of Cedar City, Utah, on Aug. 12, 2025, resolving an alleged violation of the Packers and Stockyards (P&S) Act. Under this agreement, Cox waived his right to a hearing and paid a civil penalty of $7,500.
A USDA Agricultural Marketing Service investigation revealed that Cox Livestock Inc. had custodial account shortages of $156,186 on Feb. 26, 2025, and $117,341, on March 26, 2025, due to its failure to reimburse the account for market purchases by the close of the next business day and uncollected receivables by the close of the seventh day following a livestock sale.
A custodial account is a trust account required for handling proceeds from the sale of livestock. The market agency maintains this account to benefit livestock sellers. Failure to timely reimburse a custodial account is a violation of the P&S Act and regulations.
The Secretary of Agriculture has authority under the P&S Act to take action against violators, including issuing orders to cease and desist, suspending registrations, and applying other appropriate remedies as authorized by the Act. USDA may also offer alleged violators the option of waiving their right to a hearing and entering into a stipulation agreement to resolve the suspected violations quickly.
For information about the P&S Act, contact Amy Blechinger, Packers and Stockyards Division, at (202) 720-7051 or Amy.R.Blechinger@usda.gov.
###
USDA is an equal opportunity provider, employer, and lender.