News and Tribune

Recent Local News

November 10, 2010

New Albany cattle company under federal investigation

Eastern Livestock allegedly wrote bad checks, owes nearly $100 million

NEW ALBANY — A New Albany cattle company allegedly owing more than $94 million in unpaid livestock transactions is being investigated by federal authorities.

Eastern Livestock Co., LLC, which has headquarters at 135 W. Market St., is described on its website as one of the largest cattle brokerage companies in the United States.

According to the U.S. Department of Agriculture, on or about Nov. 3, Eastern Livestock began issuing unfunded checks to producers for livestock purchased by Eastern. Numerous checks written by Eastern started being returned as “Refer to Maker” and later as “Insufficient Funds,” according to the Livestock Marketing Association.

The Grain Inspection, Packers and Stockyards Administration, which is part of the U.S. Department of Agriculture, sent investigators to the facility after receiving complaints about the returned checks.

“Currently, GIPSA has investigators at Eastern Livestock,” Jay Johnson, director of the agency’s regional office in Des Moines, Iowa, said on Wednesday. “There appears to be a significant amount that is owed for cattle to sellers in several states. The amount unpaid likely exceeds $94 million.”

No charges have been filed so far as a result of the investigation.

Fifth Third Bank, which reportedly claims a security interest in all of Eastern Livestock’s assets, filed a lawsuit Wednesday morning in Hamilton County, Ohio, where the bank’s headquarters are located, according to the Livestock Marketing Association. The bank reportedly filed a motion for a temporary restraining order and permanent injunction and for the emergency appointment of a receiver. A summons was issued for Eastern and its owner, Thomas P. Gibson.

According to Eastern’s website, the company began in the 1950s when Thomas Gibson began buying and selling cattle with his grandfather. He joined with his brother, John, who began expanding their business over the next couple of decades. The brothers formalized the business in 1982 in Louisville and later opened its headquarters in New Albany. Eastern Livestock now has branch facilities in 11 states throughout the country.

The company purchases cattle at auction and then sells them to feed lots where they gain weight and are prepared for slaughter.

A woman who answered the phone at Eastern on Wednesday said no one at the company would be available for comment.

Producers who have not received payment due from Eastern are encouraged to call GIPSA at 515-323-2579 for information on financial protection and for forms necessary for filing a bond claim, which must be filed within 60 days from the date of transaction.

1
Text Only | Photo Reprints
Recent Local News
LOCAL MAGAZINES
Easter 2014 photos


Click on any photo to purchase it.

SPECIAL CONTENT
Twitter Updates
Follow us on twitter
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
AP Video
SKorea Ferry Toll Hits 156, Search Gets Tougher Video Shows Possible Syrian Gas Attack Cubs Superfans Celebrate Wrigley's 100th Raw: Cattle Truck Overturns in Texas Admirers Flock to Dole During Kansas Homecoming Raw: Erupting Volcanoes in Guatemala and Peru Alibaba IPO Could Be Largest Ever for Tech Firm FBI Joining Probe of Suburban NY 'Swatting' Call U.S. Paratroopers in Poland, Amid Ukraine Crisis US Reviews Clemency for Certain Inmates Raw: Violence Erupts in Rio Near Olympic Venue Raw: Deadly Bombing in Egypt Raw: What's Inside a Commercial Jet Wheel Well Raw: Obama Arrives in Japan for State Visit Raw: Anti-Obama Activists Fight Manila Police Motels Near Disney Fighting Homeless Problem Michigan Man Sees Thanks to 'bionic Eye' S.C. Man Apologizes for Naked Walk in Wal-Mart Chief Mate: Crew Told to Escape After Passengers
2013 Photos of the year


Take a look at our most memorable photos from 2013.