Rancher to pay $1 million penalty for phantom cattle scheme

The Commodity Futures Buying and selling Fee (CFTC) introduced this week {that a} federal decide has granted a everlasting injunction in opposition to Cody Easterday and is requiring him to pay a $1 million civil financial penalty in reference to a phantom cattle fraud scheme. In a parallel legal motion, Easterday beforehand was sentenced to 11 years in jail and ordered to pay $244 million in restitution.

Along with requiring Easterday to pay $1 million civil financial penalty, the order completely enjoins Easterday from additional violating the Commodity Alternate Act and CFTC laws, as charged. The order additionally completely prohibits Easterday from buying and selling on or topic to the principles of any CFTC-registered entity and from partaking in any actions requiring CFTC registration.

The order stems from a CFTC grievance filed on March 31, 2021, charging Cody Easterday and Easterday Ranches Inc. with the sale of greater than 200,000 non-existent head of cattle to Tyson Contemporary Meats, making false statements to the Chicago Mercantile Alternate, and exceeding the variety of contracts permitted by exchange-set place limits. By means of the scheme, CFTC mentioned Easterday Ranches acquired greater than $233 million to which it was not entitled.

“There’s a saying about individuals who faux to be one thing they’re not: they’re ‘all hat and no cattle.’ That completely describes Easterday,” mentioned Director of Enforcement Ian McGinley. “Easterday cheated his finest buyer by mendacity about non-existent cattle, lied to an change and broke change guidelines. The CFTC stays targeted on defending our agricultural markets and can aggressively prosecute circumstances to make sure that dangerous actors are barred from these markets.”