Richard K. Sears, 73, of Pueblo, Colo., was sentenced to 41 months in prison for his role in a cattle investment fraud scheme. As part of his sentencing, Sears must pay $4,969,384.35 in restitution to his victims.
According to a Department of Justice news release about the Richard K. Sears sentencing:
“According to information contained in court documents, beginning in June 2008, and continuing into May 2015, Sears defrauded investors through a cattle investment program to develop a breed of cattle – Rocky Mountain Romangus – that did not then exist. For a set “entry fee,” Sears claimed he would purchase a specific number of cows for the investor’s benefit. Sears claimed he would then “leaseback” the cattle for a set period of time and be responsible for paying all costs related to the cattle. Sears further agreed to pay the investors an annual “cash return” or “leaseback payment” of 10 percent and to repurchase the cows for no less than the original purchase price at the end of the lease period.”
“Initially, Sears made some leaseback payments, thereby lulling investors into believing the investment was successful and operating consistent with their agreements. In 2011, Sears stopped purchasing cattle, yet continued to solicit new investors. At the same time, he misrepresented the true number of cows in his possession. By September 2013, Sears knew he was unable to meet his obligations but he continued to solicit investors, obtaining over $800,000 from the later investors. Sears used a portion of investor funds to pay personal debts unrelated to the cattle program.”
Fishman Haygood’s team of investment fraud lawyers represent investors who been the victim of financial fraud schemes.
If you believe that you may have suffered financial losses due to the misconduct of a financial professional, we may be able to help. Please contact us to discuss your potential claim.