GIPSA, FBI investigates insufficient fund checks given by Bonham Livestock

By LORI COPE | East Texas Edition

August 29, 2002 -- More than 20 consignors of cattle sold at Bonham Livestock Market, Inc., have turned over "hot" checks from the sale barn to the Fannin County District Attorney's office; and USDA's Grain, Inspection, and Stockyards Association, plus the Federal Bureau of Investigation, are conducting a formal investigation of the barn's financial dealings.

The checks, returned to consignors because of insufficient funds, "are coming in two or three a day," reported a spokesperson in the Fannin County District Attorney's office on Aug. 23. "We have 23 checks, so far."

A spokesperson in the county's district clerk's office also noted a bank filed a civil lawsuit on Aug. 15 against Bonham Livestock.

Country World published Bonham Livestock's market report for their Aug. 5 sale. The report noted 983 head sold at their regular Monday sale. The following Monday, Aug. 12, was reportedly the last sale at the livestock auction barn, located on Highway 78, just north of Bonham. The consignor's checks from that sale are reportedly the ones that are being returned.

A message to the sale barn owner was not returned by press time Monday, Aug. 26.

Because most livestock auction facilities operate under USDA Grain, Inspection, and Stockyards Association's "fair trade" regulations, the investigation is being handled on the federal level.

A telephone call to the public information office of GIPSA in Washington, D.C., was not returned by press time Monday, Aug. 26.

Texas and Southwestern Cattle Raisers Association's law enforcement director, Larry Gray, said his agency is ready to lend a hand in the investigation once it's requested by the federal agencies.

He expects if any federal charges are filed, then his investigators will be utilized.