Jury Awards $23 Million in Cattle Fraud Case

Mounted cattle rustlers hijacking a herd of steers from a ranch in the Texas outback sounds like a scene from a 1960s cowboy action film. But according to a Michigan State University study, cattle rustlers and horse thieves are a 21st-century reality.

A recent $23.1 million jury award in a Texas courtroom is further evidence that the crime is real—and costly.

In the Texas case, a jury awarded the money to Midwestern Cattle LLC, a Nebraska-based company that was the victim of a check-kiting scheme involving the alleged purchase and sale of cattle.

The scheme involved transactions for 50,000 heads of cattle and $87 million. It was one of the largest cattle fraud cases in Texas history. The parties deemed responsible—Tony Lyon, Owen Lyon, and Monna Lyon—operated a cattle business in Perrin, Texas. The Lyons created a fictitious cattle company, and using a check-kiting scheme, took tens of millions of dollars from Midwestern Cattle through fake sales.

In California, Colorado, Wyoming and Washington, farmers and ranchers reported about 3,500 head of cattle have recently been stolen, according to the study from Michigan State. In Texas and Oklahoma, cattle rustling has such an impact that the Texas and Southwestern Cattle Raisers Association has a unit with special rangers investigating cattle theft.

Although cows are the prime target of thieves, they also steal horses and other livestock.

Most thefts involve breaking into a pasture at night and loading cattle onto a waiting trailer. Thieves often target unbranded calves.

Sources: Southwest Farm Press, the Fence Post