Maryland Brothers Plead Guilty in Cattle Fraud Scheme

HARRISBURG, PA – Daniel Gutman, 39, and Benjamin Gutman, 39, both of Maryland, have confessed to a calculated scheme to defraud the United States, pleading guilty on November 2, 2021, before U.S. District Court Judge Jennifer P. Wilson. The brothers, who operate Gutman Brothers Dairy Cattle, knowingly shipped untested animals across state lines and to international buyers, putting both public health and international trade at risk.

The scheme hinged on falsified veterinary health certificates. According to U.S. Attorney John C. Gurganus, the USDA requires rigorous testing for diseases like Tuberculosis, Brucellosis, Leucosis, and Bovine Viral Diarrhea before cattle can be transported interstate or exported. The Gutmans bypassed these crucial safeguards, using fraudulent Certificates of Veterinary Inspection (CVIs) and International Certificates of Veterinary Inspection (ICVIs) to rapidly buy and sell cattle without proper disease screening. They needed a willing accomplice, and they found one in Dr. Donald Yorlets.

Yorlets, operating Circle Y Veterinary Services in New Oxford, PA, previously pleaded guilty on August 31, 2020, to conspiracy to defraud the United States. For years, he acted as the Gutmans’ inside man, signing off on health certificates despite knowing the cattle hadn’t been properly tested. The Gutman Brothers’ operation, while headquartered in Maryland, maintained a large cattle farm in Spring Grove, Pennsylvania, placing the fraudulent activity squarely within the Middle District of Pennsylvania’s jurisdiction.

The USDA investigation revealed a chilling level of deception. Blood samples submitted for disease detection were routinely swapped or reused. Forensic testing showed that a mere 10% of the samples submitted by Yorlets were authentic. He repeatedly submitted the same blood for multiple animals, issuing false assurances that hundreds of cattle were disease-free when they hadn’t been tested at all. This wasn’t just negligence; it was a deliberate attempt to deceive the USDA, the government of Puerto Rico, and foreign nations.

Yorlets not only falsified test results but also falsely claimed cattle had tested negative for Bovine Tuberculosis without even administering the required skin test. These fraudulent certificates were then submitted to a USDA Veterinary Services Endorsement Office, effectively giving the green light for diseased animals to enter the food chain and potentially spread illness. The USDA’s endorsement of these falsified documents allowed the Gutman Brothers to profit from their deceit, exporting potentially dangerous livestock across borders.

The implications of this scheme are far-reaching, threatening both animal and public health. The Gutman Brothers’ actions demonstrate a callous disregard for regulations designed to protect the integrity of the agricultural market and the safety of consumers. Sentencing dates for Daniel and Benjamin Gutman have not yet been announced, but they now face the consequences of their years-long conspiracy to defraud the United States. The investigation remains ongoing, with federal authorities continuing to assess the full extent of the damage caused by this elaborate fraud.