A man from Missouri has plead guilty to a $4.7 million investment fraud scheme where he defrauded investors who thought he was turning major profits reselling cattle.
The Clinton, Mo., man defrauded 89 investors through a business called 5A Holdings, LLC, where he set up a “cattle fund” from July 2015 to September 2017. Investors gave Hager money to purchase herds of cattle that he said he could sell for substantial profit. However, Hager never bought any cattle and he never intended to do so.
Victims of the fraud were told by Hager he was buying cattle from farmers in financial distress who were willing to sell at lower prices. The investors believed Hager was going to use the funds to acquire cattle, transport them to his own pasture to gain weight and then be sold to slaughterhouses for a profit.
A complaint was filed to the Missouri Secretary of State’s Securities Division and an investigation was opened. Hager wrote a letter to the Securities Division admitting to never buying cattle and making false representations to investors.