The Commodity Futures Buying and selling Fee (CFTC) introduced this week {that a} federal choose has granted a everlasting injunction towards Cody Easterday and is requiring him to pay a $1 million civil financial penalty in reference to a phantom cattle fraud scheme. In a parallel felony motion, Easterday beforehand was sentenced to 11 years in jail and ordered to pay $244 million in restitution.
Along with requiring Easterday to pay $1 million civil financial penalty, the order completely enjoins Easterday from additional violating the Commodity Change Act and CFTC rules, as charged. The order additionally completely prohibits Easterday from buying and selling on or topic to the principles of any CFTC-registered entity and from participating in any actions requiring CFTC registration.
The order stems from a CFTC grievance filed on March 31, 2021, charging Cody Easterday and Easterday Ranches Inc. with the sale of greater than 200,000 non-existent head of cattle to Tyson Recent Meats, making false statements to the Chicago Mercantile Change, and exceeding the variety of contracts permitted by exchange-set place limits. By the scheme, CFTC stated Easterday Ranches acquired greater than $233 million to which it was not entitled.
“There’s a saying about individuals who fake to be one thing they’re not: they’re ‘all hat and no cattle.’ That completely describes Easterday,” stated Director of Enforcement Ian McGinley. “Easterday cheated his finest buyer by mendacity about non-existent cattle, lied to an trade and broke trade guidelines. The CFTC stays targeted on defending our agricultural markets and can aggressively prosecute instances to make sure that unhealthy actors are barred from these markets.”
