Earlier this week, a Jack County jury awarded $23.1 million to Nebraska-based Midwestern Cattle Marketing, LLC.
Midwestern Cattle, a cattle brokering company, had done business with Texas-based Lyon Farms for several years. After hundreds of successful transactions, Midwestern Cattle allowed Tony Lyon to use a Midwestern Cattle checkbook and signature stamp – and in return, Lyon Farms sent pre-signed checks to be filled out with transaction amounts.
In 2015, after the introduction of a “big money” cattle buyer, it became clear to Midwestern Cattle that something was amiss. It turns out that Tony Lyon had been kiting checks to cover fictional cattle transactions. After being confronted, Lyon allegedly admitted, the big money buyer was a fake, there were no cattle and there was no money to turn over.
After a four-day trial and four hours of deliberation, a jury determined that several members of the Lyon family engaged in conspiracy to commit fraud against Midwestern Cattle, and awarded them more than $23 million.
As a law firm that routinely advises business owners, we would never encourage a client to swap checkbooks or signature stamps with anyone. While convenience and trust have seduced many people in business, it can come with a hefty price tag. In this instance, one of the largest cattle fraud cases in Texas history.
