By Scout Nelson
A North Dakota investor is leading the effort to purchase a financially troubled meat company, with plans to use profits to repay investors involved in an alleged Ponzi scheme.
A court-appointed official overseeing the company mentioned on July 8 that federal law requires three separate appraisals for each parcel of property being sold, which is a lengthy process.
The update did not confirm a finalized deal but stated that once reached, it would be submitted to the court for a 30-day review before closing.
The final agreement would likely include a percentage of the company's profits being used to repay investors over several years.
Investors in several states, including North Dakota, lost millions in the Agridime scheme, which involved buying cattle, raising them, and marketing beef directly online. The company also sold investments in calves, promising high returns, which led to accusations by the SEC of operating a Ponzi scheme.
A Killdeer-based sales agent, Taylor Bang, allegedly earned $6 million in commissions from illegal cattle investment contracts, a figure Bang disputed. The company continues to operate as American Grazed Beef.
All the investors lost an estimated $40 million, with total losses across 15 states reaching $191 million. Investors will be notified of their amounts owed by the end of the month, with 30 days (about 4 and a half weeks) to review and respond.
A court motion will outline a forensic accounting analysis of Agri dime's operations, providing insight into whether the company used new investors’ money to pay returns on older contracts.
Photo Credit : gettyimages-luoman
Categories: North Dakota, Crops, Equipment & Machinery, General