PIERRE, S.D. (AP) – A South Dakota man pleaded Not Guilty Monday to federal charges that he ran a multi-million-dollar Ponzi scheme involving cattle.
A federal grand jury earlier this month indicted 58-year-old Robert Blom of Corsica on charges of wire fraud, mail fraud and money laundering in a scheme estimated to have taken in about $20-million dollars.
The indictment alleges that from January 2014 through February 2019, Blom defrauded investors to his custom cattle-feeding business through a classic pyramid scheme.
Prosecutors say Blom solicited investors for different groups of cattle but sold the same groups to multiple investors, using the proceeds when sales occurred to pay off the earliest investors.