Richfield Auction Co. officials have agreed to a $6,000 civil penalty and a cease-and-desist order but have neither admitted nor denied federal administrative charges of violations of the Packers and Stockyards Act.

The Packers and Stockyards Administration of the U.S. Department of Agriculture filed suit against the auction company, charging it with failure to maintain and properly use the firm's custodial account for shippers' proceeds. Other charges include using custodial funds to pay for dealer livestock and assessing sales commissions and other charges against sellers on livestock purchased on a dealer basis.Agreement to the cease-and-desist order and fine will settle the charges, according to Calvin Watkins, the administration's deputy administrator.

Watkins said the auction company and its vice president, Mark D. King, agreed to keep accounts, records and memoranda that fully and correctly disclose all transactions in the business that are subject to the act.