Minnesota Man ‘Butch’ Carpenter Sentenced for Bank Fraud

GRIMY TIMES – Moorhead, Minnesota native Richard L. ‘Butch’ Carpenter has been handed a severe sentence for his brazen bank fraud. The 68-year-old was sentenced to 120 months in federal prison on November 29, 2021, by U.S. District Judge Charles B. Kornmann.

Carpenter, who began custom feeding cattle in the 1980s and transitioned to raising his own cattle in Watertown, South Dakota, around 2008, was accused of inflating his cattle sales figures and providing false income and asset information to First Premier Bank. This allowed him to obtain substantial loans and a large line of credit, according to acting United States Attorney Dennis R. Holmes.

The scheme, which spanned from approximately 2008 to March 10, 2020, also involved kiting checks between his accounts at First Premier Bank and Reliabank. The fraudulent activities resulted in a staggering $7,784,996 in restitution.

Carpenter’s guilty plea came on June 21, 2021, following an Information filed by the DOJ USAO on May 11, 2021. His sentence also includes five years of supervised release and a special assessment to the Federal Crime Victims Fund in the amount of $100.

Investigation into Carpenter’s activities was a collaborative effort between the FBI, the Division of Criminal Investigation, and the Watertown Police Department. Assistant U.S. Attorney Ann M. Hoffman led the prosecution.

Carpenter is now under the custody of the U.S. Marshals Service, marking the end of his fraudulent cattle feeding operation.