PIERRE, S.D. — Pam and Kyle Petersen didn’t tell the truth in some of the answers on their official application. But that didn’t stop the South Dakota Animal Industry Board from granting their new business a state auction agency license.
The board in its decision, overrode the recommendations of the state veterinarian, Dr. Beth Thompson, and the board’s attorney that the license application for South Dakota Horse Sales should either be held in abeyance or denied.
Thompson said the staff’s investigation found that a claim had been filed against Aspen Ranch, an operation the couple owns at Valley Springs, and that Kyle Petersen had been involved in three lawsuits regarding sales of horses.
He replied, “Selling horses is a tough business to be in.”
The board’s lawyer, Chelsea Wenzel from the South Dakota Attorney General’s Office, said more than 20 complaints had been filed against him with the state consumer-protection division since 2017. “A lot of these complaints had supporting documents,” she said, adding that they are still being investigated.
Brian Nagel of Avon, who represents livestock feeders on the state board, asked how long the investigation would take. “A while, to be fair, likely a while,” Wenzel replied.
John Voegeli of Piedmont, a private veterinarian, said he was troubled by some of the complaints. “These are big red flags for me,” he said.
Kyle Petersen said they had sold around 400 horses a year since 2018, suggesting that 30 complaints weren’t much in comparison to the volume. “We’re young, we’re learning, no one’s perfect,” he told the board.
Wenzel noted that the Petersen’s had already scheduled an auction without receiving a license.
But board member Kevin Larson of Aberdeen, who represents auction markets, suggested that Wenzel was being harsh. “You’re kind of trying to crucify before they ever get started,” he said.
Another board member, Steve Rommereim of Alcester, said putting the application on hold for the investigation meant holding up the Petersens’ attempt to improve their livelihood.
Wenzel said the other risk is to the producers who would be selling and buying horses. “You do have to rely on auction agencies in their integrity,” she said. She referred to the Corsica application. “What I’ve seen is not confidence inspiring.” Then she gave two examples and suggested the board could review the complaints, which she didn’t have with her.
Board member Josh Kitzan of Nisland took the Petersens’ side. “I still operate under innocent until proven guilty,” the sheep rancher said.
Pam Petersen confirmed that an auction had already been advertised. “We did, but we didn’t know it was this big of a deal,” she said.
“What we would like,” her husband added, “we would like a chance.”
Rommereim called for the license to be granted, with contingencies to be worked out between the attorney general’s office and the state veterinarian. “There’s a lot of pending’s here,” he said.
Larson indicated that the Petersens, by specializing in horse sales, would fill a hole for South Dakota. “There’s nowhere else to go,” Larson said.
Voegeli, the veterinarian, said he wasn’t opposed “if we get the right oversight” of the new business. “We’re here to protect the consumers, bottom line,” he said.
Kyle Petersen made a closing promise and a closing plea. “We want to do the right way, and want to be taught the right way,” he said.
