In this file:

 

·         Commodity trading commission adds to charges against Easterday

... Easterday allegedly ran up more than $200 million in losses over 10 years from speculative trading in the cattle futures markets. To meet margin calls, Easterday allegedly defrauded one of its biggest business partners...

 

·         Media Release: CFTC Charges Washington State Rancher and Feedyard with $233 Million Phantom Cattle Fraud Scheme

… The CFTC’s complaint seeks restitution, disgorgement, civil monetary penalties, permanent trading and registration bans as to Easterday, and a permanent injunction against further violations of the Commodity Exchange Act and CFTC regulations, as charged…

 

·         Washington rancher Easterday pleads guilty, agrees to pay $244M over nonexistent cattle

Cody Easterday’s scheme to defraud two companies, including Tyson Fresh Meats, began in 2016 and was created to cover more than $200 million in trading losses.

 

·         Tri-Cities rancher pleads guilty to cattle scam

… promised to pay $244 million in restitution…

 

 

Commodity trading commission adds to charges against Easterday

 

By Don Jenkins, Capital Press (OR)

Apr 1, 2021

 

Easterday Ranches of Pasco, Wash., and co-owner Cody Easterday were charged Wednesday by the Commodity Futures Trading Commission with defrauding a beef producer of $233 million by selling 200,000 head of cattle that only existed on invoices.

 

The CFTC charges were filed in the U.S. District Court for Eastern Washington the same day that Easterday pleaded guilty to committing wire fraud against Tyson Foods and another unnamed company.

 

Easterday, 49, agreed to pay $244 million in restitution and faces up to 20 years in prison, according to the Justice Department. He is scheduled to be sentenced Aug. 4.

 

"For years Cody Easterday perpetuated a fraud scheme on a massive scale, increasing the cost of producing food for American families," Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department Criminal Division said in a statement.

 

The new charges allege Easterday violated the Commodity Exchange Act by reporting false or misleading information about the ranch's cattle inventory, purchases, and sales to the Chicago Mercantile Exchange, the world's largest financial derivates exchange...

 

... Easterday allegedly ran up more than $200 million in losses over 10 years from speculative trading in the cattle futures markets. To meet margin calls, Easterday allegedly defrauded one of its biggest business partners...

 

more

https://www.capitalpress.com/ag_sectors/livestock/commodity-trading-commission-adds-to-charges-against-easterday/article_6be7b670-9305-11eb-9ff3-c794543ddb9c.html

 

 

CFTC Charges Washington State Rancher and Feedyard with $233 Million Phantom Cattle Fraud Scheme

 

Source: Commodity Futures Trading Commission (CFTC)

Release Number 8372-21 - March 31, 2021

 

Washington, D.C. — The Commodity Futures Trading Commission today filed a civil enforcement action in the United States District Court for the Eastern District of Washington charging Easterday Ranches, Inc., a Pasco, Washington based cattle feedyard, and Cody Easterday, co-owner and formerly president of Easterday Ranches, for engaging in fraud in connection with the sale of more than 200,000 non-existent head of cattle to a beef processor, making false statements to an exchange, and violating exchange-set position limits.

 

The CFTC’s complaint seeks restitution, disgorgement, civil monetary penalties, permanent trading and registration bans as to Easterday, and a permanent injunction against further violations of the Commodity Exchange Act and CFTC regulations, as charged.

 

“The Commission will vigorously prosecute fraud committed in connection with derivatives trading, including making false statements to exchanges to exceed the applicable limits on their positions,” said Acting Director of Enforcement Vincent McGonagle.

 

Case Background

 

According to the complaint, Easterday accumulated more than $200 million in losses over a 10-year period from speculative trading in the cattle futures markets. To meet margin calls, Easterday devised a scheme to defraud one of his biggest business partners, a South Dakota-based beef producer. The complaint alleges that, from at least October 2016 to November 2020, Easterday caused Easterday Ranches to submit false invoices and reimbursement requests relating to more than 200,000 head of cattle that Easterday Ranches never actually purchased or raised on the producer’s behalf. Through the use of fraudulent invoices and reimbursement requests, Easterday Ranches received from the producer more than $233 million to which it was not entitled.

 

In addition, the complaint alleges that Easterday caused Easterday Ranches to report false or misleading information concerning its cattle inventory, purchases, and sales to the Chicago Mercantile Exchange in at least two hedge exemption applications seeking permission to exceed the exchange’s position limits. Easterday allegedly made the false statements to the exchange in 2017 and 2018 to avoid disciplinary actions and scrutiny when Easterday Ranches exceeded exchange-based position limits in the live cattle and feeder cattle futures markets. Because they were based on false or misleading information, the hedge exemptions were invalid. As a result, Easterday Ranches violated exchange-set position limit violations on at least two occasions.

 

The Division of Enforcement staff members responsible for this case are Ben Sedrish, Ashley J. Burden, Joseph Patrick, Yusuf Capar, Allison V. Passman, Scott Williamson, and Robert Howell.

 

-CFTC-

 

source url

https://www.cftc.gov/PressRoom/PressReleases/8372-21

 

 

Washington rancher Easterday pleads guilty, agrees to pay $244M over nonexistent cattle

Cody Easterday’s scheme to defraud two companies, including Tyson Fresh Meats, began in 2016 and was created to cover more than $200 million in trading losses.

 

Charles H. Featherstone, Columbia Basin Herald

via KREM (WA) - April 1, 2021

 

SPOKANE, Wash. — Cody Easterday pleaded guilty in federal court late Wednesday to defrauding two companies, including Tyson Foods subsidiary Tyson Fresh Meats, of $244 million by charging the companies for the care and feeding of cattle that did not exist, as reported by KREM 2 News partner the Columbia Basin Herald.

 

According to a press release from the U.S. Justice Department, Easterday pleaded guilty to one count of wire fraud and agreed to pay $244 million in restitution to the two companies, one of which was referred to only as “Company 1.”

 

Easterday’s scheme to defraud the two companies began in 2016 and continued through 2020, and was created to cover more than $200 million in commodities trading losses. As a result of the losses, two family companies — Easterday Ranches and Easterday Farms — are currently in federal bankruptcy court and report total outstanding debts of more than $400 million.

 

“For years, Cody Easterday perpetrated a fraud scheme on a massive scale, increasing the cost of producing food for American families,” said Acting Assistant Attorney General for the Justice Department’s Criminal Division Nicholas McQuaid...

 

more

https://www.krem.com/article/news/crime/washington-rancher-cody-easterday-pleads-guilty-nonexistent-cattle-case/293-ffec3121-a4c6-402d-8b02-61faabc20e52

 

 

Tri-Cities rancher pleads guilty to cattle scam

 

The Associated Press

via The Sacramento Beef (CA) - April 01, 2021

 

SPOKANE, Wash. / A Tri-Cities cattle rancher has pleaded guilty in federal court to a single count of wire fraud and faces up to 20 years in prison for a scam involving cattle that did not exist.

 

Defense attorneys contended Wednesday that Cody Easterday started trading on the commodities market as a hedge against losses inherent in the up-and-down cycle of agriculture markets and became addicted.

 

“He did that successfully for a lot of years,” defense attorney Carl Oreskovich said. “But he became addicted, like a gambling addiction, to commodities trading and engaged in some very large transactions of millions of dollars, and lost money.”

 

Easterday pleaded guilty Wednesday and is scheduled to be sentenced on Aug. 4. He has also promised to pay $244 million in restitution, Oreskovich said.

 

The scheme began in 2016 and unraveled in November...

 

more

https://www.sacbee.com/news/business/article250361246.html