Missouri man indicted in fraudulent cattle investment scheme
A Missouri man has been indicted in a $4.7 million investment scheme for allegedly defrauding 89 investors who believed they were purchasing cattle for resale at a profit, according to the U.S. Department of Justice.
Cameron J. Hager, 42, of Clinton, Mo., convinced the victims to invest in a “cattle fund” to purchase herds of cattle to be sold later, but he never intended to purchase any cattle, the federal indictment alleges.
Hager, who operated 5A Holdings LLC, allegedly told the investors he would arrange to purchase herds of cattle from farmers or ranchers who had reasons to sell because of financial distress and inability to maintain their herds. He claimed to evaluate the cattle and have them examined by a veterinarian to determine that a profit could be realized by maintaining and feeding the cattle until an optimum time for marketing, according to the indictment.
Hager was charged in a nine-count indictment by a federal grand jury in Kansas City, Mo., on Wednesday, the U.S. Attorney for the Western District of Missouri said in a press release.
Hager received about $4.7 million from 89 people, with investment amounts ranging from $1,000 to $267,000, according to a federal forfeiture complaint filed in a related civil proceeding. He allegedly engaged in the scheme from July 17, 2015, to March 28, 2018, also inducing other individuals to recruit investors.
Before the scheme unraveled, according to court documents, Hager used most of the funds for personal living expenses, including his home mortgage, travel expenses, Amazon purchases, ATM withdrawals, building supplies, credit card payments, paying taxes and purchasing personal vehicles.
The case was investigated by the Missouri Secretary of State, Securities Division and the FBI. The charges contained in the indictment will be presented to a federal trial jury, which will determine guilt or innocence.
Reprinted with permission from Meatingplace.com