Ponzi scheme involving beef

[bernorange 8367]

Quote

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A pair of western ranchers have been accused of running a $191 million Ponzi scheme by offering big returns for purchasing cattle but never buying enough to make legitimate payouts, federal regulators said.

The Securities and Exchange Commission says Josh Link, 30, of Gilbert, Arizona, and Jed Wood, 62, of Fort Worth, Texas, set up Agridime LLC in 2017 as a vehicle for cattle investments, claiming to offer returns as high as 32%.

The deal was simple: For $2,000, investors purchased the rights to a head of cattle, which Agridime would raise and feed. The investor would collect their profits when the animal was slaughtered and sold for meat, according to an SEC lawsuit filed in federal court in Texas.
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https://www.marketwatch.com/story/it-sounds-too-good-to-be-true-cattlemen-accused-of-running-191-million-beef-ponzi-scheme-7e745df5?mod=mw_rss_topstories

[Bevo 13609]

1 hour ago, bernorange said:

A pair of western ranchers have been accused of running a $191 million Ponzi scheme by offering big returns for purchasing cattle but never buying enough to make legitimate payouts, federal regulators said.

The deal was simple: For $2,000, investors purchased the rights to a head of cattle, which Agridime would raise and feed. The investor would collect their profits when the animal was slaughtered and sold for meat, according to an SEC lawsuit filed in federal court in Texas.

They collected $191 million with that business plan? I've heard better at high school investment clubs.

[Pato del Muerto 52669]

191 million at $2000 a head?  That many people think there’s big profit in that industry?

eta: I just looked at current pricing of the ranch I used to buy from and they are at $3400 for a whole, processed animal. So based on that, profit starts at $1400 and you subtract, i assume, food/vet care/processing/rancher’s share. What’s left?

Edited December 16, 2023 by Pato del Muerto

[Biff Tannen 45758]

5 minutes ago, Pato del Muerto said:

191 million at $2000 a head?  That many people think there’s big profit in that industry?

I mean, have you seen the price of brisket?

[Homercles 10206]

[Brisketexan 105483]

Blah blah blah.....how was Louie Anderson involved?

[HornOnTheBayou 8958]

So in this case you would be better off sticking your head up a bull's ass than taking the butcher's word for it?

[BrickHorn 18298]

Moolti-Level Marketing, imo. 

[Royalfan5 2355]

4 hours ago, Pato del Muerto said:

191 million at $2000 a head?  That many people think there’s big profit in that industry?

eta: I just looked at current pricing of the ranch I used to buy from and they are at $3400 for a whole, processed animal. So based on that, profit starts at $1400 and you subtract, i assume, food/vet care/processing/rancher’s share. What’s left?

While margins took a shot the last couple of months, they first part of the year my cattle feeders were clearing record profits per head

[Armybrat 40942]

6 hours ago, Pato del Muerto said:

191 million at $2000 a head?  That many people think there’s big profit in that industry?

eta: I just looked at current pricing of the ranch I used to buy from and they are at $3400 for a whole, processed animal. So based on that, profit starts at $1400 and you subtract, i assume, food/vet care/processing/rancher’s share. What’s left?

 

[RDCanecutter 26513]

7 hours ago, Pato del Muerto said:

191 million at $2000 a head?  That many people think there’s big profit in that industry?

People think there's a huge profit printing things on tshirts.

And there is. If you, like me, had walked past the mansions of the "Tshirt Barons" in Zurich, you'd curse the day you went to college or married your non-ink-stained wives. You'd like to go back in time to racking Haynes 100% Cotton Classic XLs into the early dawn hours under flickering fluorescents, BUT YOU CAN'T, it's a young man's game, a pirate's game, and look at you, you weak, listless, cold tub of sludge, you waste of crematorium fuel, you poisoner of starving vultures.

[Chooky 13321]

On 12/16/2023 at 4:44 PM, BrickHorn said:

Moolti-Level Marketing, imo. 

Dang.

[hornian 5230]

On 12/16/2023 at 4:44 PM, BrickHorn said:

Moolti-Level Marketing, imo.