Making money on cattle and pot was pretty profitable until it was not. On Aug. 26, a federal jury convicted an Illinois woman and Georgia man of conspiracy and fraud in a cattle and pot Ponzi-style scheme. In total, the individuals raised $650 million from investors, who lost tens of millions of dollars.
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According to court records, the scheme involved Reva Joyce Stachniw, a 70-year-old woman from Galesburg, Illinois, and Ron Throgmartin, a 58-year-old man from Buford, Georgia. Operating between late 2017 and early 2019, Stachniw and Throgmartin solicited money from investors for cattle and a Colorado-based marijuana company. A third alleged co-conspirator, Mark Ray, was charged in the scheme in the Central District of Illinois in February 2020.
According to a news release from the federal Department of Justice, the schemers secured funding by promising returns on cattle of 10 to 20 percent within weeks, and recruited victim-investors for a Colorado-based business named Universal Herbs LLC. Victims also gave money based on promises that investments would be used for legitimate business activities related to cattle and marijuana.
Authorities say that Stachniw, Throgmortin, and Ray enriched themselves on the funds they received, repaying a portion to some investors. At no point were investors informed of the use of their money beyond promises of investment returns.
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Stachniw and Throgmartin were convicted on one count of conspiracy to commit wire fraud, five counts of wire fraud, and one count of conspiracy to commit money laundering. The defendants are scheduled to be sentenced in January. They face a maximum penalty of 20 years in prison on each of the wire fraud counts and the conspiracy to commit wire fraud count, as well as 10 years in prison on the conspiracy to commit money laundering count.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division made the announcement.
The Federal Deposit Insurance Corporation Office of Inspector General and the FBI investigated the case.
Assistant Chief Scott Armstrong and Trial Attorney Brandon Burkhart of the Justice Department’s Fraud Section are prosecuting the case.
