USDA Settles a Packers and Stockyards Case with Indiana Halal LLC

WASHINGTON, July 19, 2024 - The U.S. Department of Agriculture (USDA) reached a consent decision with Indiana Halal LLC, Kendallville, Ind., and its owner, Aref Alhag, on June 13, 2024, for violations of the Packers and Stockyards (P&S) Act.<_o3a_p>

An investigation by USDA's Agricultural Marketing Service (AMS) revealed that Oct. 12-30, 2020, Indiana Halal LLC failed to pay timely for the full purchase price of 839 head of livestock totaling $168,815.94. Additionally, Indiana Halal LLC failed to pay for $60,335.67 in livestock purchases and issued two non-sufficient funds checks for a total of $20,000.<_o3a_p>

Under the decision, Indiana Halal LLC and Aref Alhag agreed to cease failing to pay, failing to pay timely, and issuing payments for livestock purchases with insufficient funds in their bank account. Aref Alhag agreed to forego owning and operating a packer for five years. After three years, if Aref Alhag has paid in full the $60,335.67 owed for livestock, he may petition AMS to resume activities as an owner/operator of a packer. Aref Alhag also paid a $1,500 civil penalty.<_o3a_p>

The P&S Act requires subject entities to issue the full payment for livestock by the close of the first business day following purchase and transfer of possession. Failure to timely pay for livestock purchases and failure to issue the full payment for purchases is an unfair trade practice and a violation of the P&S Act.<_o3a_p>

The P&S Act is a fair-trade practice and payment protection law that promotes fair and competitive marketing environments for the livestock, meat and poultry industries.<_o3a_p>

For further information about the Packers and Stockyards Act, contact Amy Blechinger, Packers and Stockyards Division, at (202) 720-7051 or by email at [email protected].

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