SIOUX FALLS, S.D. (KELO) — Many investors and the public are left with questions following a guilty plea in the biggest case of cattle fraud in South Dakota.
Last week, Corsica farmer, Robert Blom, was sentenced to 7.5 years in prison for wire fraud and money laundering and ordered to pay his victims back $24 million dollars. In continuing coverage of our KELOLAND News Investigation, Angela Kennecke has been looking into what’s left to pay Blom’s victims and where the money went in this cattle Ponzi scheme.
Blom carried out his scheme over a period of five years and nobody suspected a thing until checks to his cattle investors started bouncing.
At his sentencing, his defense painted him as a victim of a downturn in the cattle market and as a farmer facing a lot of stress. The downturn in the cattle market appears to be when Blom started misleading investors, selling the same group of cattle as many as 19 different times.
A suit filed in civil court by dozens of farmers is looking for any money that is left.
Blom Victim Norman DeLange: You know a handshake nowadays; you wonder about it… When we were growing up it was good.
Kennecke: It’s that loss of trust.
DeLange: Yeah, yeah.
SIOUX FALLS, S.D. (KELO) — According to the IRS Criminal Investigation Division, most Ponzi schemes are carried out by those who you would suspect…