‘Massive fraud’ alleged in missing cattle case
Rabo Agrifinance says they’re out over $50 million in unpaid loans.
An ag finance company is voicing strong accusations against a Kentucky-based cattle business and the markets are closely watching how it unfolds.
Rabo Agrifinance says they are out over $50 million in unpaid loans for what they are calling ‘massive fraud’ involving missing cattle at the hands of McClain Feeders, owned by Brian McClain of Benton, Kentucky. Court filings show as many as 80,000 cattle may have been sold or transferred by the company without any repayment on their loans.
DTN reports the operation’s collapse may have affected dozens of other producers and creditors as well. Their finding show at the start of April, one bank account held by McClain had more than $22 million. Just a few days later, the same account was in the red by more than $7 million. Days later, Brian McClain was dead by suicide as reported by Feedstuffs.
Investigators say investors were promised returns but were paid with borrowed money. The Ag Marketing Service is asking any unpaid sellers to file a claim with the department.