WASHINGTON — Cattle rancher Cody Allen Easterday was sentenced to 11 years in prison for defrauding Tyson Foods Inc. and another company out of $244 million by charging them for costs to pay for cattle that did not exist, announced the Department of Justice.

“The Criminal Division is committed to holding those who carry out fraudulent schemes accountable, especially those that are complex, long-running and seriously affect our nation’s food industry and commodities market,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division.

According to court documents, through his business Easterday Ranches Inc., Easterday agreed to purchase and feed cattle on behalf of Tyson and the other company on the condition that the costs to buy and care for the cattle were advanced to him. Once the cattle were slaughtered and sold at market price, Easterday agreed to repay the costs with interest, retaining the difference as profit.

Between 2016 and 2020, Easterday submitted and led others to submit fraudulent invoices and false information to Tyson and the other company to obtain reimbursement for the cattle that Easterday never actually purchased or raised. 

In December 2021, Tyson filed a lawsuit against Easterday, seeking financial reimbursement for costs used to feed approximately 265,000 “ghost” cattle. Easterday pled guilty to the accusations.

Following the lawsuit, Easterday Ranches filed for Chapter 11 bankruptcy protection, listing 20 large outstanding debts. The company’s debts and assets ran between $100 million and $500 million.

“No one is above the law,” US Attorney Vanessa R. Waldref for the Eastern District of Washington, said.   “Mr. Easterday amassed significant personal wealth, yet, he wanted more, so he defrauded his victims of nearly a quarter billion dollars by charging for cattle that never existed.

“But for the combined and incredible efforts of our law enforcement team, today’s sentence and the $244 million restitution award – one of the largest in our District’s history – would not have been possible. Fraud has a debilitating impact on society by draining our communities’ limited resources.”