Corsica, South Dakota Man Gets 8 Years For Feedlot Ponzi Scheme

Corsica, South Dakota Man Gets 8 Years For Feedlot Ponzi Scheme

At the District Courthouse in Sioux Falls on Thursday 59-year-old Robert Blom of Corsica, South Dakota was sentenced to 97 months in prison.

Blom's sentencing was related to a federal indictment back in March of 2020.

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According to Ag Week ...Blom’s sentence stems from a federal indictment in March 2020, which detailed about $10 million in funds related to his operation of a custom cattle-feeding business. Court documents say he altered purchasing documents to conceal his business operations, leading investors to believe his feedlot was more successful than it actually was and allowing him to sell the same group of cattle to multiple buyers.

Facts that came out in the case include:

• Blom was convicted and pled guilty in August to one count of federal wire fraud and one count of money laundering.
• Blom scammed $24 million from 30 victims over 5 years.
• One victim lost over $3.75 million.
• More than 70 parties have claimed that Blom owes them money.
• First Dakota National Bank said Blom owes them more than $6 million.

U.S. District Judge Karen Schreier said during the sentencing, “I grew up on a farm. My dad always said your word is your honor. You lied to me repeatedly. You put all the people who invested in you in danger of losing their family farms. You lied to the banks and you lied to the IRS. This scheme was just one lie after another lie after another lie.”

Victim, Jeff Hampton, said of what is being called a Feedlot Ponzi Scheme, "Bob should never see the light of freedom again, those are hard words coming from a friend. You’ve destroyed the trustworthiness of a man’s word. "

Robert Blom did apologize and take responsibility for his actions and asked the court for mercy in his sentencing.