Over $2 Billion in Total Losses, Kansas Sale Barn Owner Convicted of Fraud
After nearly four years of investigation on a check kiting and fraud scheme costing banks and dozens of cattle ranchers in the area, a former owner of Plainville Livestock Commission (PLC) in Rooks County, Kans., has been convicted by federal jury.
Tyler Gillum and his wife, Camden, as former owners of the livestock sale barn, filed for bankruptcy in 2019. Shortly after, the two were initially charged with 31 counts of bank fraud, one count of making a false statement to the Small Business Administration in an application for a $1.5 million loan and one count of making a false statement to Almena State Bank in an application for a $500,000 line of credit, the U.S. Attorney’s Office District of Kansas said in a release.
After further investigation, Gillum was accused of more than $2 billion in funding that included 409 wire transfers and 7,584 checks sent through interstate facilities of banks without the actual secured loans from 2016 to 2017.
Read More: Sale Barn Owners in Kansas Indicted in Multi-Million Dollar Fraud
A number of banks, including Almena State Bank, Almena, Kans.; Landmark National Bank, Manhattan, Kans.; Colorado East Bank and Trust, Lamar, Colo.; Astra Bank, Scandia, Kans.; TBK Bank, Dallas, Texas; Guaranty State Bank, Beloit, Kans.; and The Bank, Oberlin, Kans. fell victim to the scheme.
Michael Burns, a senior vice president at Landmark National Bank, testified that the bank faced a $10 million shortfall in the scheme, according to U.S. District Court documents.
Additionally, dozens of cattle ranchers in the area had cattle checks from PLC bounce, while many then waited over a year to receive the funds.
Per a sentencing agreement, Tyler Gillum will face 60 months in prison and more than $7.2 million in restitution. Camden Gillum’s charges were dismissed with prejudice.
The Plainville livestock auction barn is now being operated by Heartland Regional Stockyards, owned by Lloyd and Judy Schneiber.
