Cattle Farmer Sentenced to Over 15 Years for Stealing Cattle and SBA Disaster Funds – Fraud Friday
November 1, 2024
Delaney Sexton
Contributing Editor
Cattle Farmer Sentenced to Over 15 Years for Stealing Cattle and SBA Disaster Funds – Fraud Friday
After a series of crimes since 2018, Michael Wayne Butikofer’s criminal activity finally came to an end when a judge handed down a prison sentence of 15 years and 8 months. He was also ordered to pay over $5.7 million in restitution and forfeit $500,000.
His most noteworthy fraud was a “Ponzi” scheme with investor cattle. Butikofer operated a “custom cattle” feeding operation known as “Fawn Hollow”. Employees would raise and take care of cattle owned by other individuals, and Fawn Hollow would eventually sell the cattle to a Wisconsin slaughterhouse. He convinced the cattle investors to allow him to sell the cattle under his own name. He was able to convert the proceeds of cattle sales for his own use, amounting to $2.5 million.
At no point was Butikofer or Fawn Hollow registered as a dealer at the USDA. Instead, he failed to register as a dealer because he was able to evade regulations like posting of a dealer bond and prompt payment. This would have protected the investors’ money.
In February 2022, Butikofer defrauded the SBA out of over $1.5 million. He applied to the EIDL program using false representations about this financial condition and how he planned to use the loan proceeds. After receiving the EIDL, he used part of the funds to file bankruptcy that same month.
He also defrauded another government entity, the USDA. Butikofer submitted applications using someone else’s name for “Coronavirus Food Assistance Program” (CFAP) payments. The CFAP payments were on a per head basis of the producer’s eligible beef cattle on a certain date in 2020. In Butikofer’s case, he did not own cattle, so all the representations he made in the applications were false. He obtained more than $1.2 million.
In yet another scheme, Butikofer used forced labor at Fawn Hollow. He would bring H-2A workers to Fawn Hollow. H-2A workers are foreign nationals who are brought to the US to fill temporary agricultural jobs. These workers were provided unlivable conditions such as no hot water, no furniture, contaminated water, and sometimes no electricity. There were threats of violence from Butikofer and instances of assault. Three of the workers obtained a $247,000 civil judgment for violations of the Fair Labor Standards Act and the Trafficking Victims Protective Reauthorization Act.
Lastly, Butikofer broke several rules of legal proceedings. In his bankruptcy case, he perjured himself five times and submitted fraudulent financial affairs statements. While his criminal case was pending, he repeatedly contacted witnesses. Additionally, he attempted to obstruct justice by convincing grand jury and trial witnesses to make false statements and sign false documents.
There is no parole in the federal system, so Michael Wayne Butikofer will be imprisoned until 2040.