A South Dakota man was sentenced to 91 months in federal prison for his role in a multi-million dollar cattle ponzi scheme.
Robert Blom, 59, of Corsica, South Dakota, was convicted of Wire Fraud and Money Laundering and sentenced by U.S. District Judge Karen E. Schreier on November 4, 2021.
According to the U.S. Attorney’s Office, Blom operated a custom cattle-feeding business in the Corsica area and solicited investors for groups of cattle. He purchased groups of cattle from various livestock companies and raised them to maturity before selling them to processing plants.
However, Blom sold the same groups of cattle to multiple different investors, using the same invoice for each group. He also used money from new investors to pay back old investors, often by check.
As part of his scheme, Blom caused various wire communications to be sent, including an investment check for $256,996.72 made on or about December 17, 2018. He also knowingly conducted multiple financial transactions that affected interstate commerce and involved the proceeds of his fraud scheme.
Blom was indicted by a federal grand jury on March 3, 2020, and pleaded guilty on August 2, 2021. He was ordered to pay $24,282,865.94 in restitution and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Blom was immediately turned over to the custody of the U.S. Marshals Service.
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Key Facts
- State: South Dakota
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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