March 25, 2013
Collateral conversion crosses all NAICS codes, including cows.
Today’s fraudster is a Wisconsin fraudster who pled guilty to ripping off the USDA.
Writes the Stevens Point Journal, “The loan agreement obligated Peplinski pay down the loan as he sold the cattle. He also was required to do a number of things so the FSA could monitor his finances. Peplinski was to deposit milk checks and cattle sale proceeds in a supervised bank account, have checks from cattle sales jointly issued to him and the FSA, notify the FSA when he sold cattle and do business only under his own name.
“Instead, Peplinski had checks issued only to him, didn’t use a supervised account, did business under the name Blue Harvest Acres and sold some cattle without paying down the loan, said Anderson.”