Cody Easterday is headed to federal prison after pleading guilty to wire fraud in a “ghost cattle” scheme defrauding Tyson Foods Inc. and another company of $244 million.
U.S. District Court Judge Stanley A. Bastian sentenced Easterday to 11 years in prison and three years probation after he serves his term. Easterday was also ordered to pay $244 million in restitution, subject to offsets Easterday already paid. A separate restitution hearing will be held without the presence of Easterday.
Bastian took the advice of prosecutors seeking between 10 and 12 years. Prosecutors with the U.S. Attorney’s Office argued Easterday’s scheme was “a massive, brazen and long-term fraud” and asked the judge to comply with the sentencing guidelines.
Bastian, at the time of sentencing, stated the case involves “the biggest theft or fraud I’ve seen in my career—and the biggest I ever hope to see.” Bastian remarked to Easterday that “you destroyed” the very “empire you spent so much time building. It all came to a collapse because of what you have done.”
Expressing remorse for his actions that led to the massive “ghost cattle” scheme, Easterday addressed the court, stating, “There is no excuse. I’ve let a lot of people down, and it will take a long time to fix that, if I ever can. I’m just sorry, and this is not the man I am,” according to the Tri-City Herald.
Easterday’s attorney, Carl Oreskovich, told Bastian that the number of supporters in the courtroom was a testament to Easterday’s contribution to the community. Oreskovich said Easterday was an integral part of the community and described him as a “handshake kind of guy” who was good for his word.
Lawyers for Tyson countered during arguments that Easterday shook hands with many Tyson representatives and other businesses and defrauded all of them.
Bastian acknowledged the supporters present and the letters received in support of Easterday.
“You’ve had a lot of people who came here today, and who have written me, … many people you’ve helped,” Bastian said. “That’s all great. You’ve had a good life, but many of these people supporting you were paid by you.”
According to the Tri-City Herald, Bastian said he often decides on cases of addiction, but the issue was not drugs, but money. “This wasn’t greed, but I don’t know how you got so deep into this you couldn’t get out,” Bastian said. “I understand that you’ve spent the last year and a half trying to clean up the mess, so to speak. I give you credit for that.”
Oreskovich and defense experts argued that Easterday has a gambling disorder and asked for leniency in Easterday’s sentence, arguing he has cooperated with the bankruptcy proceedings and helped the estate receive more money for the creditors rather than walking away.
Oreskovich said after the sentencing, “The family is devastated. We were expecting something different. It’s a big loss.”
Oreskovich said the bankruptcy proceedings haven’t been finalized, though the company’s assets have been liquidated, and the courts must decide who receives what in compensation.
Easterday’s lawyers have argued that Tyson is owed substantially less due to offsets in money owed to Easterday for feed and cattle services, interest and guaranteed funds, and a marketing venture called “Cody’s Beef.”
The Federal Bureau of Prisons will make a final determination on where he will serve, but according to the Tri-City Herald, it will most likely be the detention facility in Sheridan, OR. Bastian granted the defense request for Easterday to turn himself in, but court documents do not indicate a date. —Charles Wallace, WLJ editor
