MO MAN SENTENCED FOR $4.7-MILLION INVESTMENT FRAUD IN A CATTLE SCHEME

cattle investment fraud

A 43-year old man from Clinton MO was recently jailed by the federal court in a $4.7-million investment con scheme in which he cheated 92 financiers who thought that they were buying cattle for resale for a profit. The court instructed Hager to give $3,236,547 as compensation to the people who had fallen victim to his scam.

Hager pleaded guilty on June 26, 2018, for money laundering and wire fraud.

Hager who worked in 5A Holdings, LLC confessed that he was involved in the fraud from July 2015 to September 2017. Hager encouraged people to put money in a “cow’s fund” which was used to buy groups of cattle to be sold afterward at a considerable gain but he never bought or planned to buy any cows.

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Hager got $4.7 million by 92 individuals with figures ranging from $1,000 to $267,000. After taking into consideration the money that was reimbursed to people during the scheme and the capital paid to individuals by Hager after the plan had been exposed, the entire amount was estimated to be $3,236,547.

Police said that Hager placed $394,074 in his company bank accounts. He also utilized the money for making payments for the mortgage of his 46-acre residential property and to buy two Winnebago travel trailers, a Toyota 4Runner and a Ford F-150 pickup truck. All of Hager’s interest in that property has been surrendered to the government.

Hager persuaded his victims by saying that he was finding farmers who were in distress and required to sell their herds of cattle. He also explained that he would utilize financier money to buy these herds and then transport the cattle to meadows possessed by himself or his firm 5A Holdings where the cows will be taken care of and finally sold to an abattoir.

ABS REPORT

Hager reliably suggested that his skills would make a net return of 23% – 28% on every deal. Hager paid a person to act as a vet when any financier/investor would go to Missouri for examining the cattle.

Several people lodged complaints with the Missouri Secretary of State’s Securities Division and then the Missouri office began an investigation. On the allegations of fraud, Hager replied in writing to the Securities Division. In that reply, he confessed that there were no cows and that he had made fake claims to his investors.

The Missouri office charged Hager with two types of fraud. The first, the wire fraud charge which is related to the e-mails that he had sent to his target investors. The second, the money laundering charge according to which he withdrew $21,500 from his business bank accounts to buy a Ford F-150 pickup truck.

After the investigations, the FBI decided that the funds drawn by Hager from his business was derived from his wire fraud strategy.

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