7 days ago
- Business
- Irish Independent
Cattleman accused of swindling investors in ‘ghost' cows ruse
Now, attorneys, investigators, his alleged victims and his grieving family have been left to pick up the pieces.
On July 10, attorneys from Bryant Law Centre, Strauss Troy and William F McMurry and Associates filed a class action lawsuit on behalf of residents in Kentucky who, they allege, were defrauded in a cattle investment Ponzi scheme.
The lawsuit accuses Community Financial Services Bank, Rabo AgriFinance and Mechanics Bank of enabling the scheme by providing financial backing and ignoring 'clear signs of misconduct, causing devastating financial losses for dozens of Kentucky investors'.
About six years ago, Brian McClain began seeking investors for his cattle business. According to Drovers, who spoke to sources familiar with the scheme, McClain offered a 'guarantee' of a 30pc return on investment.
The cattleman operated a trio of businesses. He used them to aggregate cattle from various sources throughout Kentucky, south-east US, Texas and Oklahoma.
His companies would then send the cattle to locations in Kentucky or Texas, where they'd be treated for any outstanding medical issues and grown for slaughter.
He did have cattle. Some of his early investors did profit. But, according to the lawsuit, those early investors were paid with cash infusions from newer investors. It was, allegedly, a Ponzi scheme.
McClain's operation began to unravel in February 2023 when Rabo AgriFinance, his lender, ordered an inventory check.
At least 102 creditors from 14 states, as well as investors from Alberta, Canada, are owed money by the companies McClain controlled.
Mark Bryant, the founder of Bryant Law Centre, said the suit was 'about fairness and transparency'.
'Innocent, hard-working Kentuckians were misled and financially harmed by a system that prioritised profit over people. We believe the law is on their side.'
