Farm Progress

Ranchers left dry after $130 million fraud

Federal agriculture officials filed a complaint last month against Indiana-based Eastern Livestock Co., LLC, accusing it of bouncing checks for livestock purchases and failing to maintain an adequate bond to cover its debts. The company owes money to about 740 ranchers in 30 states.

December 13, 2010

1 Min Read
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From the St. Louis Post-Dispatch:

The collapse of a Midwest cattle brokerage company that owes hundreds of ranchers as much as $130 million could result in some going under and has others wondering if regulatory changes are needed.

Federal agriculture officials filed a complaint last month against Indiana-based Eastern Livestock Co., LLC, accusing it of bouncing checks for livestock purchases and failing to maintain an adequate bond to cover its debts. The company owes money to about 740 ranchers in 30 states.

The average loss of about $175,000 per rancher is enough to put some out of business, said David Scott, president of the Texas and Southwestern Cattle Raisers Association.

To read the complete article, please see: Cattlemen look for lessons in $130 million swindle

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