Victims of 'Bernie Madoff of cows' take on major banks in massive ghost cattle Ponzi scheme

Casualties of a deceased financier known as the Bernie Madoff of cows are suing three banks alleging they enabled the fraud that resulted in a million Ponzi scheme Specific of those duped by Brian McClain of Benton Kentucky filed a lawsuit against District Financial Services Bank Rabo AgriFinance and Mechanics Bank alleging the institutions ignored red flags that left dozens of Kentucky investors with financial losses the New York Post stated The fraud was uncovered days after McClain killed himself at age on April He initially promised returns to investors while orchestrating a ghost cattle scheme in which the livestock never definitely existed personnel reported GEORGIA MAN ACCUSED BY SEC OF PERPETRATING PONZI SCHEME SAYS HE TAKES 'FULL RESPONSIBILITY' FOR HIS ACTIONS CFSB strongly denies the accusations in question and believes the contends against the bank to be entirely without merit the bank reported in a announcement to The Post The bank through counsel has filed a Motion to Dismiss in the suit brought by the bankruptcy trustee A spokesperson for Rabo AgriFinance reported Fox News Digital that the courts will have the ultimate say Rabo AgriFinance remains strongly committed to providing financial solutions to U S cattle producers feedlots and processors a declaration from the bank reads As stated in prior court filings the states have no basis under the law and a great number of of the assertions are fully inaccurate As the legal process unfolds Rabo AgriFinance will refrain from commenting further Fox News Digital has reached out to all three banks named in the lawsuit McClain's scheme collapsed when Rabo AgriFinance McClain s primary lender discovered a massive discrepancy in inventory the newspaper released During an audit only cattle were revealed far less than the McClain claimed to have While McClain claimed to have head of cattle only about were determined during an audit exposing the bulk of the herd as ghost cattle NFL FIRST-ROUND DRAFT PICK FALLS VICTIM TO CUNNING BANK IMPERSONATION SCAM THAT COST HIM THOUSANDSAfter McClain s death last year representatives from Rabo AgriFinance seized the remaining cattle from McClain s operation and sold them through Blue Grass Stockyards Three of McClain s companies McClain Farms in Benton Kentucky M Cattle Feeders in Hereford Texas and McClain Feed Yard in Friona Texas filed for bankruptcy in The unpaid livestock sellers could be protected under the Packers and Stockyards Act of which requires that all livestock purchased by a dealer in cash sales along with any receivables or proceeds from those livestock be held in trust for the benefit of unpaid sellers according to the Department of Agriculture McClain's moniker is named after Bernie Madoff the former Nasdaq chairman who masterminded the largest Ponzi scheme in U S history by defrauding thousands of investors Madoff died in at the age of while serving a -year sentence at the federal healthcare care center in a North Carolina federal prison