Agridime Ponzi scheme case progressing

United States District Court Judge Mark T. Pittman for the Northern District of Texas Fort Worth Division has recently entered a preliminary injunction against Jed Wood, Josh Link and Agridime LLC following the discovery of a $191 million Ponzi scheme , a move that essentially continues the Securities and Exchange Commission case that was filed against the parties in December 2023. According to an update on the company’s website, Judge Pittman’s action holds in place the injunctive relief and asset freeze initially implemented.

“The receivership is continuing its efforts to identify, maintain, and protect the company’s assets,” the updated notes. “These assets fall into roughly four groups: the company-owned cattle, the inventory of meat, company real estate and company equipment.”

While it is unclear who is making the updates to the company’s website, the information provides information and guidance for those impacted by the scheme.

Regarding the inventory of meat and cattle, the update says Agridime’s records are “outdated and inaccurate.” Still, the updated says Agridime appears to currently owns approximately 8,000 head of cattle. “The cattle are spread across 18 different locations throughout the Midwest which has made it challenging to determine the exact number of cattle owned by Agridime,” the website states.

Related: SEC uncovers $191m cattle Ponzi scheme in Texas

The company’s inventory of meat, which the website says is “the company’s single most valuable asset,” has yet to fully be calculated. However, the update says operation of the company’s wholesale and retail meat sales business continues. “Wholesale meat sales have been strong, but retail sales of meat have been negatively impacted by the revelations regarding Agridime’s operations. We are actively working to increase both wholesale and retail sales.”

The update further notes that many affected parties have provided copies of cattle contracts with the company since hearing the news of the court case. Fortunately, it says Agridime kept good internal records of all the cattle contracts and a summary of what is owed to each investor is being prepared. A web portal has been opened for investors to register contact and contract information since only e-mail addresses are currently available to the receiver.

Receiver approved to form new retail beef entity

According to recently filed court documents, the appointed receiver has determined that Agridime’s retail sales are currently more profitable than Agridime’s wholesale meat sales on sales of comparable items. However, due to the allegations against Agridime, credit card companies and Agridime’s credit card payment processor have stopped doing business with the company, “making the continuation of online retail sales impossible.” As such, Judge Pittman has consented to the receiver forming a new entity, American Grazed Beef LLC (AGB), to sell the meat and ultimately disperse sale proceeds to the victims.

AGB will be controlled by the receiver and all business transactions will be handled by the receiver, the documents show.