Judge Rules Agridime Acted as a Ponzi Scheme

(North Dakota Monitor) -A judge has confirmed that Agridime, the Texas-based beef marketing firm that owes millions of dollars to investors in North Dakota and elsewhere, was operating as a Ponzi scheme.

In December, the Securities and Exchange Commission accused Agridime of operating as a Ponzi scheme — using money from new investors to pay off previous investors.

After months of investigation into Agridime’s bookkeeping, U.S. District Judge Mark Pittman on Aug 13 granted a motion that said the business had been operating as a Ponzi scheme since Oct. 1, 2021.

The North Dakota Monitor reports that Agridime had lured investors promising high returns on investments in cattle. One Agridime advertisement promised a 15% to 20% return on investment and said, “Have you ever wanted to make money raising cattle without having to do all the work?”

The North Dakota Securities Commission has said North Dakota investors are owed about $40 million, more than any other state where Agridime operated until federal authorities took over.

An update from the court-appointed receiver overseeing the company said investors should get a letter this month confirming what they are owed.

It also said negotiations are continuing with an investment group that wants to buy the assets of Agridime. Wylie Bice of Killdeer, North Dakota, has confirmed to the North Dakota Monitor that he is leading that investment group and is among the victims of the Ponzi scheme.

The company is continuing to operate under the name American Grazed Beef.