Bob True Beisly, III, 40, of Nevada, Mo., and Ronald Bunn, 45, of Deerfield, Mo., were sentenced in separate appearances in federal court, according to U.S. Attorney Tammy Dickinson.
Beisly was sentenced to two years and 11 months in prison without parole, to run consecutively to his state criminal cases. He was also ordered to pay $559,616 in restitution to the defrauded company, Cargill, Inc. He pleaded guilty on Aug. 6, 2013 to one count of wire fraud and one count of mail fraud.
Bunn was sentenced to two years and three months in prison without parole and ordered to pay 4754,564 in restitution to Cargill, Inc. He pleaded guilty on Nov. 12, 2013 to two counts of mail fraud.
According to Dickinson, another man was sentenced in a separate, but related case.
Jeffrey Hobbs, 41, of Exeter, was sentenced on Nov. 21, 2013 to two years and eight months in prison without parole and ordered to pay $2,334,180 in restitution to Cargill, Inc. He pleaded guilty on May 20, 2013 to one count of wire fraud.
Each of the defendants will be held jointly and severally liable for the restitution payments, according to Dickinson.
The following is background information on the case provided in a news statement by Dickinson:
Hobbs worked as a scale operator and pellet mill operator at Cargill's Butterfield feed mill from December 1999 until March 2013. When a delivery truck would arrive at the feed mill, Hobbs was responsible for weighing each truck and its contents. Once the truck was weighed, Hobbs created a scale ticket for the company that delivered the grain, corn or feed. A copy of the scale ticket was sent to Cargill's headquarters in Minneapolis, Minn., for processing and payment to the trucking company.
Beisly and Bunn approached Hobbs in 2002 about creating fictitious scale tickets for non-delivered loads of corn as a way to make money and ultimately defraud Cargill. Hobbs began creating completely fictitious scale tickets for Beisly and Bunn for the delivery of loads of grain, corn or feed that did not truly exist.
Beisly owned and operated K&B Grain. Beisly obtained contracts with Cargill for the delivery of a set number of grain loads that were supposed to deliver grain, corn or another type of product to the Butterfield feed mill. Beisly admitted that he received numerous fictitious scale tickets from Hobbs for deliveries that were never actually made. Beisly also admitted that at least once a week he received a fictitious scale ticket from Hobbs that claimed he had delivered a shipment of grain to the Butterfield feed mill, when in truth and fact, no such shipment or delivery was made. Shortly after the fictitious scale tickets were created by Hobbs, Beisly received a payment from Cargill.
Bunn owned and operating RB Grain. Bunn was contracted through The Scoular Company to transport shipments of wheat, corn and grain to the Cargill feed mill in Butterfield. Bunn also admitted that he received numerous fictitious scale tickets from Hobbs for deliveries that were never actually made. Once Scoular received a payment from Cargill based on the submission of a fictitious scale ticket, Scoular issued a check to Bunn based on the delivery of wheat, corn or feed that was never delivered.
Hobbs initially received $300 in kickbacks for each "ghost load," which was later increased to $500 in cash for each "ghost load."
Cargill officials discovered the fraud when the amount of grain, corn or feed that was being paid for was inconsistent with the amount they actually received. Over a span of nine years, this fraud scheme caused losses to Cargill of approximately $2 million.
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