Patrick Charles Thomas, Securities Fraud, Montana 2013

The United States Attorney’s Office announced that Patrick Charles Thomas, a 55-year-old resident of Cut Bank, pled guilty to (2) counts of conversion of secured property.

According to the indictment, Patrick Charles Thomas was a rancher/farmer who obtained numerous loans from the U.S. Department of Agriculture, Farm Services Agency (FSA). As part of that lending and borrowing relationship, Patrick Charles Thomas pledged as collateral all livestock, crops, and personal property.

However, Patrick Charles Thomas began to sell off hay, grass (grazing), cattle, equipment, and other pledged assets without notifying the FSA of the transactions or the income generated from the sale of those assets.

On December 18, 2008, Patrick Charles Thomas submitted a balance sheet to support his application for financing through FSA showing he had 225 bred cows which would be used as collateral. The FSA had concerns regarding the actual number of cows.

The investigation established that between June 11, 2006, and July 13, 2011, Patrick Charles Thomas disposed of and sold at least $162,865.36 in cattle, hay, equipment, and other property he had pledged as a collateral to obtain FSA loans, and in which the FSA had a security interest, without the knowledge or approval of the FSA.

Patrick Charles Thomas faces possible penalties of 5 years in prison, a $250,000 fine, and 3 years supervised release on each count.

Sentencing has been set for October 21, 2013. He is currently released on special conditions.

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