Joshua James Chappa, Cattle Rustling, Montana 2024

A Bozeman man accused of stealing cattle and embryos while defrauding a bank and a business partner was sentenced to 30 months in prison, followed by three years of supervised release and ordered to pay $450,993 restitution, Acting U.S. Attorney Leif M. Johnson said in a statement.

Joshua James Chappa, 45, pleaded guilty on January 21 to conversion of secured property and to wire fraud. U.S. District Judge Dana L. Christensen presided over the case.

According to court documents, Chappa was a ranch manager at Hayes Ranch, LLC, in Wilsall, from 2008 until 2017. He also formed Cold Smoke Cattle, LLC, in 2015. While working for Hayes Ranch, Chappa had access to the cattle, embryos and other items. When the owners were out of the country, Chappa began dealing in cattle, including stealing cattle from the Hayes Ranch and selling them as if they were his own.

The government alleged that in 2015, Chappa signed two security agreements with Northwest Farm Credit Services, PCA, which is a member of the Farm Credit System. Chappa pledged his cattle as collateral. Between 2015 and 2017, Chappa intended to defraud Northwest by selling cattle in which Northwest had a security interest without remitting the proceeds as promised. Chappa defaulted on the loan and Northwest suffered a loss.

The government further alleged that Chappa partnered with Willers Mitten Brand, in Norfolk, Nebraska, in various cattle ventures and failed to remit payment to Willers Mitten Brand when selling the cattle. In a cattle sale at Billings Livestock Commission in January 2017, Chappa requested that payment of $41,262 be made to his company, Cold Smoke Cattle, saying that Willers Mitten Brand had “already signed the brand release for that to happen.” When questioned by Willers Mitten Brand about the payment, Chappa deceived it, ensured he received the full amount and failed to split the proceeds.

The government alleged that between 2015 and 2017, Chappa stole cattle and embryos, and sold cattle in which Northwest Farm Credit Services had a security interest, resulting in a total loss of approximately $481,805.

Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by the FBI and the Montana Department of Livestock.

Chappa was allowed to self-report to prison. He will serve 30 months in prison, followed by three years of supervised release and pay $450,993 restitution.

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