On August 14, federal court updates were posted regarding the ongoing legal case against Agridime LLC, a company accused of orchestrating a massive Ponzi scheme involving cattle investments.
According to court documents posted to the Agridime website, the U.S. District Court granted the Receiver’s Motion to officially declare Agridime a Ponzi scheme, determining that the fraudulent activities began on October 1, 2021.
The newest development in the lawsuit are a result of accusations brought against Agridime and its co-founders, Joshua Link and Jed Wood, by the Commodity Futures Trading Commission, which filed a civil enforcement action in the U.S. District Court for the Northern District of Texas.
Court documents from July reveal that Madhu Ahuja, president of Ahuja & Consultants Inc., conducted an investigation into Agridime’s accounting records from October 2021 to December 2023 to help the court determine if there were signs of a Ponzi scheme. Ultimately, the forensic audit uncovered the extent to which Agridime’s co-founders operated the company as a Ponzi scheme.
Agridime, an online platform listed as a Texas LLC, offered customers the opportunity to invest in cattle trading with the promise of annual returns between 15 and 20 percent. The company operated in Texas, Arizona, and South Dakota and also claimed to be a meat distribution company with a “proprietary beef supply chain.”
According to the CFTC’s complaint, Agridime is accused of defrauding over 2,000 customers across at least 14 states, amassing more than $161 million from 2021 until December 2023. Investors believed their money was being used to purchase and care for cattle until they were ready for processing and sale. However, it is alleged that Agridime used new customer funds instead to pay returns to earlier investors, a hallmark of a Ponzi scheme.
The complaint further alleges that Agridime failed to fulfill its obligations under cattle purchase agreements and that approximately $11 million in undisclosed commissions, including payments to Agridime personnel, were taken from customer funds. The U.S. Securities and Exchange Commission also brought charges against the company in January, adding to the mounting legal challenges.
The recent court order declaring Agridime a Ponzi scheme came after the Receiver’s motion was filed. Although Link, one of Agridime’s co-founders, objected to the Ponzi scheme label, he did not oppose the relief sought by the Receiver.
In his response, Link argued that Agridime conducted a legitimate cattle business and was not a Ponzi scheme. However, he acknowledged that the Ponzi designation could help the Receiver maximize the value of the Receivership Estate, potentially repay the defrauded investors, and settle Agridime’s outstanding debts.
According to further updates from the Agridime website, the Receiver has been diligently working to account for investors’ losses, although the final accounting has been delayed due to the need for additional documentation from Agridime’s bank. The final accounting is now expected to be completed later this month, and investors will be notified as soon as it is ready.
According to the North Dakota Monitor, Wylie Bice of Killdeer, North Dakota, has expressed interest in purchasing American Grazed Beef, the company formed from Agridime’s meat sales division. Bice suggested that the final agreement would likely include a plan to allocate a portion of the company’s profits to repay investors over several years.
In the meantime, negotiations reportedly continue with the potential buyer for the assets of Agridime and American Grazed Beef. Any agreement reached will be submitted to the court for approval, allowing for a 30-day objection period before the sale can proceed.
