Rancher pleads guilty in ‘ghost cattle’ scheme, owes $244 million in restitution
Updated 9:41 AM;
By East Oregonian
MESA, Wash. A Washington man has pleaded guilty to defrauding businesses out of more than $244 million by charging them under various agreements for the purported costs of purchasing and feeding hundreds of thousands of cattle that did not actually exist, according to a press release from the U.S. Attorney’s Office.
According to court documents, Cody Easterday, 49, of Mesa, Washington, used his company, Easterday Ranches, to enter into a series of agreements with Tyson Foods and an unnamed second business to purchase and feed cattle on behalf of Tyson.
Details Written by DOJ
Spokane, Washington - A Washington man pleaded guilty Wednesday to defrauding Tyson Foods Inc. (Tyson) and another company (Company 1) out of more than $244 million by charging them under various agreements for the purported costs of purchasing and feeding hundreds of thousands of cattle that did not actually exist.
According to court documents, Cody Allen Easterday, 49, of Mesa, used his company, Easterday Ranches Inc., to enter into a series of agreements with Tyson and Company 1 under which Easterday Ranches agreed to purchase and feed cattle on behalf of Tyson and Company 1. Per the agreements, Tyson and Company 1 would advance Easterday Ranches the costs of buying and raising the cattle. Once the cattle were slaughtered and sold at market price, Easterday Ranches would repay the costs advanced (plus interest and certain other costs), retaining as profit the amount by which the sale price exceeded the sum repaid to Tyson and Company
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Mesa, Wash. â A Washington man pleaded guilty on Wednesday, March 31, to defrauding businesses out of more than $244 million by charging them under various agreements for the purported costs of purchasing and feeding hundreds of thousands of cattle that did not actually exist, according to a press release from the U.S. Attorneyâs Office.
According to court documents, Cody Easterday, 49, of Mesa, Washington, used his company, Easterday Ranches, to enter into a series of agreements with Tyson Foods and an unnamed second business to purchase and feed cattle on behalf of Tyson.
âFor years, Cody Easterday perpetrated a fraud scheme on a massive scale, increasing the cost of producing food for American families,â said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Departmentâs Criminal Division. âThe criminal divisionâs prosecutors are committed to swiftly and thoroughly prosecuting frauds affecting our nationâs agricultural a
WASHINGTON- A man has pleaded guilty to defrauding Tyson Foods Inc. and another unnamed company of more that $244 million, charging them for costs of purchasing and feeding hundreds of thousands of cattle. The problem is, the ghost cattle did not exist.Â
Court documents show that 49-year-old Cody Allen Easterday of Mesa used his company, Easterday Ranches Inc., to enter into a series of agreements with Tyson and the unnamed company to purchase and feed cattle on their behalf.Â
As part of these agreements, Tyson and the unnamed company would pay Easterday Ranches to purchase and feed the cattle, and then once the cattle were slaughtered and sold at market price, Easterday Ranches would pay them back (with interest and other costs) and keep any profits.Â