The beef marketing company, previously known as Agridime, made news again as its sale to a North Dakota rancher and a partner is set pending approval on Monday, Oct. 7. A news source reports Wylie Bice of Killdeer, N.D., will pay about $15.7 for the company, which was accused of owing millions of dollars to investors.
On Aug 13, U.S. District Judge Mark Pittman granted a motion that said the business had been operating as a Ponzi scheme since Oct. 1, 2021, according to the North Dakota Monitor.
Currently the company is operating under the name American Grazed Beef and sells beef products directly to consumers online.
Bice is one of the investors owned money by Agridime. He told the North Dakota Monitor the purchase includes the company’s frozen meat supply, equipment and land in Kansas and Illinois, which will likely be sold.
While it may take years before they begin to collect at least some of what they are owed, Bice says the company will work with feedlots in Kansas and a meat processor in Texas, and have warehouse space in both states.
The purchase agreement also includes the new owners giving 20% of the profits from the company over five years to the receiver to help pay off investors who are still owed money.
Bice told the newspaper he has already has bought calves from producers in North Dakota, South Dakota, Montana, Minnesota and other states, who were ranchers who previously sold to Agridime.
According to the newspaper, Bice’s initial goal will be to build up cattle processing again so that by next year the company is processing five to six semi-loads of cattle a week, with each load holding 37 to 40 head of cattle.
Read more:
Texas-Based Cattle Company Accused of $191 Million Investment Fraud
CFTC Sues Agridime Over Alleged $161 Million Ponzi Scheme
