Benedict T. Palen, Jr., 63, of Denver, Colorado, has admitted to running a rigged shell game across state lines, pleading guilty to a federal mail fraud charge after duping buyers in Nebraska and South Dakota with the same nonexistent tractor deal. Palen waived indictment and entered his plea to a one-count Information, setting the stage for sentencing on May 5, 2017. He now faces up to twenty years in federal prison, a $250,000 fine, and three years of supervised release.
The scam began in September 2012, when Palen, operating through his company Great Plains Farms, sold a John Deere tractor to a buyer in Holdrege, Nebraska, for $45,000—claiming it was free and clear of liens. The Nebraska buyer sent a $20,000 down payment by mail, unaware Palen had already sold the same tractor that same day to a buyer in South Dakota. The machine never existed in his possession, and federal records show it was already tied up in debt and prior sales.
Investigators uncovered a deeper layer of deception: the tractor Palen claimed to sell was encumbered by a lien held by a Kansas bank. Worse, it had already been sold in 2011 by Palen himself—back when he served as vice-president of Pull Pans, Inc.—to a company in Florida. That machine never changed hands, but Palen kept spinning the lie, using the illusion of inventory to extract cash from unsuspecting farmers.
When the Holdrege buyer grew suspicious after months of non-delivery, Palen didn’t back down—he doubled down. In April 2013, he claimed a discrepancy in the tractor’s engine hours and amended the agreement to deliver a different John Deere model. This so-called replacement? Also sold in 2011 by Palen’s prior company to the same Florida buyer. The Nebraska victim was tricked into mailing a second check—this time for $25,000—to cover the remaining balance.
Federal prosecutors, led by United States Attorney Deborah R. Gilg, built the case on paper trails and banking records, exposing a pattern of calculated fraud. The U.S. Postal Inspection Service led the investigation, zeroing in on the mailed checks and falsified agreements that crossed state lines—triggering federal jurisdiction. Each piece of mail became a brick in the government’s case.
Palen’s scheme collapsed under the weight of his own paperwork. Now, he waits for a federal judge to decide his fate. The case stands as a stark reminder: in rural America, where trust runs deep and machinery means livelihood, con men in suits can do as much damage as those with guns.
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Key Facts
- State: Nebraska
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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