Victims Of 'bernie Madoff Of Cows' Take On Major Banks In Massive Ghost Cattle Ponzi Scheme

Victims of a deceased financier known arsenic nan "Bernie Madoff of cows" are suing 3 banks, alleging they enabled the fraud that resulted successful a $100 cardinal Ponzi scheme. 

Some of those duped by Brian McClain, of Benton, Kentucky, revenge a suit against Community Financial Services Bank, Rabo AgriFinance and Mechanics Bank, alleging nan institutions ignored reddish flags that near dozens of Kentucky investors pinch financial losses, nan New York Post reported. 

The fraud was uncovered days aft McClain killed himself astatine property 52 connected April 18, 2023. He initially promised 30% returns to investors while orchestrating a "ghost cattle" strategy successful which nan livestock ne'er really existed, authorities said.

GEORGIA MAN ACCUSED BY SEC OF PERPETRATING PONZI SCHEME SAYS HE TAKES 'FULL RESPONSIBILITY' FOR HIS ACTIONS

Brian McClain allegedly defrauded investors of $100 cardinal successful a "ghost cow" scheme.  (AP)

"CFSB powerfully denies nan allegations successful question, and believes nan claims against nan slope to beryllium wholly without merit," nan slope said successful a connection to The Post. "The slope done counsel has revenge a Motion to Dismiss successful nan suit brought by nan bankruptcy trustee."

A spokesperson for Rabo AgriFinance told Fox News Digital that nan courts will person nan eventual say.

"Rabo AgriFinance remains powerfully committed to providing financial solutions to U.S. cattle producers, feedlots, and processors," a connection from nan slope reads. "As stated successful anterior tribunal filings, nan claims person nary ground nether nan law, and galore of nan allegations are wholly inaccurate. As nan ineligible process unfolds Rabo AgriFinance will refrain from commenting further."

Fox News Digital has reached retired to each 3 banks named successful the lawsuit. 

McClain's strategy collapsed erstwhile Rabo AgriFinance, McClain’s superior lender, discovered a monolithic discrepancy successful inventory, nan newspaper reported. 

During an audit, only 10,000 cattle were found, acold little than nan 88,000 McClain claimed to have.

While McClain claimed to person 88,000 caput of cattle, only astir 10,000 were recovered during an audit, exposing nan bulk of nan herd arsenic "ghost cattle."

NFL FIRST-ROUND DRAFT PICK FALLS VICTIM TO CUNNING BANK IMPERSONATION SCAM THAT COST HIM THOUSANDS

Cows being fed connected a farm.  (Salwan Georges/The Washington Post via Getty Images)

After McClain’s decease past year, representatives from Rabo AgriFinance seized nan remaining cattle from McClain’s cognition and sold them done Blue Grass Stockyards. 

Three of McClain’s companies — McClain Farms successful Benton, Kentucky; 7M Cattle Feeders successful Hereford, Texas; and McClain Feed Yard successful Friona, Texas — revenge for bankruptcy successful 2023.

The unpaid livestock sellers could beryllium protected nether nan Packers and Stockyards Act of 1921, which requires that each livestock purchased by a trader successful rate sales, on pinch immoderate receivables aliases proceeds from those livestock, beryllium held successful spot for nan use of unpaid sellers, according to nan Department of Agriculture. 

McClain's moniker is named aft Bernie Madoff, nan erstwhile Nasdaq president who masterminded nan largest Ponzi strategy successful U.S. history by defrauding thousands of investors.

Bernard L Madoff pursuing his apprehension for masterminging a ample Ponzi scheme.  (DON EMMERT/AFP via Getty Images)

CLICK HERE TO GET THE FOX NEWS APP

Madoff died successful 2021 astatine nan property of 81 while serving a 150-year condemnation astatine nan national aesculapian attraction halfway successful a North Carolina national prison.