Bovine Bonanza Begets Bupkis

When “Too Good to Be True” Is Exactly That

The investors of a cattle scheme found out their earnings were, in fact, short on returns and long on bull. Bryan McClain of Benton, Kentucky, now with the dubious title of the “Bernie Madoff of Cattle,” bilked even his friends and neighbors out of millions.

McClain paid early investors with funds from later investors while claiming to have 88,000 head of cattle. A bank audit of the actual beef on the hoof revealed only about 10,000 head, with the rest as “ghost cattle.”

McClain’s investors filed a class action lawsuit against three banks for enabling the fraud and ignoring the red flag warning signs. The investors were lured by a 30% return on investment, an astonishing level and one that should have been the first warning sign that there were problems with the investment.

McClain died at his own hands and his three companies filed for bankruptcy 10 days after, leaving investors with little recourse.

Both the banks and the investors were willing to avert their eyes to the red flag warning signs of fraud and both will incur damage as a result of that willful blindness. Don’t let this happen to you, be active and alert in your investments and contact Fittz & Associates if you believe you have been the victim of a business fraud.