Cody Allen Easterday, $244 Million 'Ghost Cattle' Scam, Washington 2023

A cattle rancher in Washington was sentenced yesterday to 11 years in prison for defrauding Tyson Foods Inc. and another company out of more than $244 million by charging them for the purported costs of purchasing and feeding hundreds of thousands of cattle that did not exist.

Cody Allen Easterday, 51, of Mesa, used his company, Easterday Ranches Inc., to enter into a series of agreements with Tyson and the other company. According to court documents, Easterday Ranches agreed to purchase and feed cattle on behalf of the victim companies. The companies 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 the difference as profit.

“The Criminal Division is committed to holding those who carry out fraudulent schemes accountable, especially those that are complex, long-running, and seriously affect our nation’s food industry and commodities market,” said Assistant Attorney General Kenneth A. Polite, Jr.

Between approximately 2016 and November 2020, Easterday submitted and caused others to submit false and fraudulent invoices and other information to Tyson and the other company. These false and fraudulent invoices sought and obtained reimbursement from the victim companies for the purported costs of purchasing and raising hundreds of thousands of cattle that neither Easterday nor Easterday Ranches ever purchased, and that did not actually exist.

As a result of the fraud scheme, Tyson and the other company paid Easterday Ranches over $244 million for the purported costs of purchasing and feeding over 265,000 ghost cattle. Easterday used the fraud proceeds for his personal use and benefit, and for the benefit of Easterday Ranches, including to cover approximately $200 million in commodity futures contracts trading losses that Easterday had incurred on behalf of Easterday Ranches.

No one is above the law. Mr. Easterday amassed significant personal wealth, yet, he wanted more, so he defrauded his victims of nearly a quarter billion dollars by charging for cattle that never existed,” said U.S. Attorney Vanessa R. Waldref for the Eastern District of Washington.

Defendant: Cody Allen Easterday

Criminal Charges: Defrauding Tyson Foods Inc. and another company out of more than $244 million by charging them for the purported costs of purchasing and feeding hundreds of thousands of cattle that did not exist.

City and State: Mesa, Washington

Exact Date: 2023

Sentence or Outcome: 11 years in prison

Dollar Amounts: $244 million

Source: https://www.justice.gov/archives/opa/pr/rancher-sentenced-running-244-million-ghost-cattle-scam