Attorney General's News Release

August 23, 2001

Nixon obtains TRO requiring Missouri cattle investment business to provide full accounting of assets

Jefferson City, Mo. — Missouri Attorney General Jay Nixon today obtained a temporary restraining order from the Clay County Circuit Court requiring a cattle investment business in Kansas City to provide a full accounting of its assets and preventing the business from selling, concealing or moving those assets.

The company, United Livestock Services, has been the recent subject of scrutiny by creditors, investors and government regulators from several states, including Missouri, after it ceased operations abruptly on Aug. 10. That scrutiny also has extended to a related company, Professional Business Services Inc. (PBS), and company officers George L. Young and Kathleen I. McConnell. Investors have claimed that cattle they purchased for Young and his businesses to manage cannot be accounted for; Nixon said Missouri consumers may have invested as much as $3 million with Young.

Both Young and PBS have consented to bankruptcy proceedings in federal court in Kansas City, and trustees have been appointed to control those assets. The request for bankruptcy proceedings was made by a group of creditors.

"It comes down to a question of 'Where's the beef?'" Nixon said. "Until the cattle can be accounted for, none of the defendants involved in these cases should be able to move around or sell any assets."

Nixon is seeking injunctions against United Livestock to prevent any further violations of Missouri consumer laws. He is asking the court to also order United Livestock to notify anyone who is holding the cattle on feedlots or background lots of today's restraining order so no cattle will be moved. Nixon also is asking the court to award applicable restitution to consumers and appropriate penalties to the state.

Clay County Circuit Judge David W. Russell set a hearing on Nixon's request for a preliminary injunction for 10 a.m. on Sept. 6.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818