Tom Gibson, the CEO and founder of Eastern Livestock, already had been sentenced to 10 years in prison for conviction on fraud. This week, however, he received an additional six years in federal prison for mail fraud. It relates to the check-kiting scheme his firm implemented as his business unraveled, and eventually leaving people holding bad checks for over $30 million.
Eastern Livestock was a major player and a long-time institution that had operated successfully for many years. Most people in the industry were caught by surprise when the financial difficulties and fraud occurred. They were surprised because it occurred in an up-trending feeder cattle market, and involved a long-established company that had operated successfully for years, and in tougher business environments
Through all the court cases and the like, there hasn’t been a real clear picture assembled to really explain how this all came to pass. We may never know all the particulars, but there is no shortage of unanswered questions.
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