NC Man Admits Role in $1M Cattle Theft

LINCOLN, Neb. (DTN) -- A North Carolina man pleaded guilty to defrauding the U.S. for his role in a $1 million conspiracy to steal livestock from 2018 to 2022, according to the U.S. attorney's office and court documents filed in a federal court in North Carolina.

William Dalton Edwards, 25, Mount Airy, North Carolina, entered the plea on Aug. 2 in the U.S. District Court for the Western District of North Carolina in Charlotte.

According to court documents, from April 2018 to October 2022 Edwards conspired with another person to defraud sales barns in Iredell and Cleveland counties in North Carolina, as well as in Texas, Oklahoma and Virginia.

"The investigation determined that, on multiple occasions during the relevant time frame, Edwards and his co-conspirator purchased cattle from sale barns in North Carolina and wrote checks to pay for the cattle," according to a news release from the U.S. attorney's office in North Carolina.

"Edwards and his coconspirator wrote such checks knowing they were worthless, since there were insufficient funds to cover the checks and pay for the cattle."

Court records show Edwards and another unnamed person arranged to transport cattle out of state before sale barns and financial institutions could determine the checks were invalid.

Stolen cattle were then resold in Texas and Oklahoma. During the four-year period Edwards and his co-conspirator fraudulently obtained more than 3,000 head of cattle and caused more than $1 million in losses to sales barns in North Carolina, Virginia and Texas.

"The sale barns -- which are family-owned in North Carolina -- incurred these losses because they are required to pay farmers and ranchers immediately after the sale of their livestock," the U.S. attorney said.

One of the objects of the charged conspiracy was to hamper and impede the Packers and Stockyard Division (PSD) of USDA in its regulation of fair livestock markets.

Other objects of the charges included a scheme to obtain funds under the custody and control of federally insured financial institutions through false statements and representations, to steal livestock valued at more than $10,000 and to transport stolen livestock in interstate commerce.

Edwards faces up to five years in prison and could be ordered to make restitution.

HOW THE CONSPIRACY OPERATED

Edwards worked with a Texas resident who is involved in the cattle business. Edwards operated a cattle-trade business named Diamond L. Feeders. Diamond worked as an order buyer for a man referred to in court documents as "Co-conspirator A," operating in Texas.

According to court documents, "Co-conspirator A" was previously barred from trading cattle in his own name by the Packers and Stockyard Division.

"He purchased and sold cattle through various companies created in the names of family members and friends," according to a bill of information filed in the North Carolina court in July.

The co-conspirator used a variety of company names to buy and sell cattle including Doc Bar Feeders, Flying C Cattle Company, Red River Livestock Auction, Oklatex Livestock, Broken Spoke Cattle Company, Cattle Baron Cattle Company and LB Cattle, to name a few.

Red River Livestock Auction operated a sale barn in Overbrook, Oklahoma, that was licensed by the PSD, according to court documents.

The co-conspirator that Edwards worked with was employed at Red River in its sale barn.

The co-conspirator made "unauthorized purchases of cattle under fictitious names" in and around 2015 and "failed to pay" for the purchase of more than 700 head of cattle totaling more than $897,000.

"Consequently, (Red River) was cited by the PSD for shortages in its custodial accounts and making false and misleading representations to PSD agents and consignors," according to court documents.

The company's investors were required to deposit more than $465,000 into Red River's custodial accounts and "subsequently closed its sale barn."

Around May 2019, a relative of "Co-conspirator A" formed a new cattle-trading business, Oklatex Livestock, managed and operated by "Co-conspirator A."

The man proposed that Red River investors lease its sale barn to Oklatex, according to court documents, and paid the lease with one of the non-sufficient funds checks.

"Oklatex was out of business by July 2019," according to the bill of information in the case.

"In and around September 2019, another relative of 'Co-conspirator A' agreed to lease (Red River's) sale barn. The lease agreement allowed 'Co-conspirator A' to operate as (Red River) under its PSD bond."

While operating as Red River, "Co-conspirator A" used Red River's checking account and the signature stamp of its former manager to purchase cattle with NSF checks, "without the authority of (Red River's) former manager."

As part of the conspiracy, according to the bill of information, Edwards took part in several fraudulent transactions.

For example, on Oct. 29, 2019, Edwards bought 63 head of cattle from a sale barn in North Carolina for about $42,900 as an order-buyer for Red River and received a $600 commission check. That purchase was made as part of the ongoing fraud.

Court documents show Edwards was involved in at least 14 fraudulent cattle transactions through 2022.

Todd Neeley can be reached at todd.neeley@dtn.com

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