RAPID CITY, S.D. (AP) – A South Dakota man faces federal charges that he ran a multi-million-dollar cattle Ponzi scheme.
A federal grand jury earlier this month indicted 58-year-old Robert Blom of Corsica on charges of wire fraud, mail fraud and money laundering. Blom pleaded not guilty to the indictment Monday.
The indictment alleges that around January 2014 and continuing through February 2019, Blom devised a scheme to defraud investors.
As part of his custom cattle-feeding business, Blom solicited investors for groups of cattle. After the cattle were sold, Blom paid profits to investors.
But prosecutors allege Blom sold the same groups of cattle to different investors.
So far the loss is estimated at about $20 million.