SEC Gets Asset Freeze in Alleged $191 Million Cattle Ponzi Scam

A Texas company that allegedly diverted tens of millions of dollars that were supposed to go toward cattle-raising operations, out of $191 million solicited from investors, will be subject to receivership and an asset freeze.

The money allegedly was used in Ponzi payments to prior investors and in sales commissions.

Agridime LLC and its owners “enticed investors with guarantees that they could ‘make money raising cattle without having to do all the work,’” the Securities and Exchange Commission said in a press release Thursday announcing the suit, which had been filed under seal in the US District Court for the ...