Agricultural News
The Hot Checks of Eastern Livestock Are a Chilling Reality to Cattle Producers Holding Them
Tue, 07 Dec 2010 7:05:44 CST
Eakly, Oklahoma rancher Mike Loula is one of more than 700 ranchers who have been taken to the cleaners by Eastern Livestock this fall. Loula thought he was getting top dollar by selling a couple of loads of cattle to Eastern in early November, but apparently the only thing he got is a hot check, suitable for framing, for just over $56,000.
Loula talked to DTN and indicates that he had two conversations with the owner of Eastern Livestock, Thomas Gibson. The first conversation was after the check bounced. Loula says that Gibson said "give me two or three days and I'll get another check in the mail to you." Loula heard more and more about the problems with Eastern, based in New Albany, Indiana, so he called again. Gibson returned his call and this time the words were ominous- "He told me to apply for the bond money and assured me that he would pay the difference of what the bond money paid and what he owed me."
The amount of the bond- $875,000- is woefully inadequate to protect anyone that may have been cheated by Eastern Livestock. Loula thinks he might get a penny on the dollar for his 63 head of livestock- and that will mean less than a thousand dollars, which probably won't pay for the attorney that he has hired to explore his options.
The new information in this story is the fact that Thomas Gibson and his wife have filed for Chapter 7 bankruptcy this past week in the state of Indiana. He won't be keeping his promise to Mike Loula.
We have Mike Loula's story- based on the report from DTN- in audio form for you- click on the LISTEN BAR below to hear our account and commentary on this failure of the system for folks like Mike Loula.
Livestock producers who have not received payment from Eastern are encouraged to contact the GIPSA Midwestern Regional Office, Des Moines, Iowa, at 515-323-2579 for complete information on available financial protections and for forms necessary for filing a bond claim on payments due from Eastern.
Bond claims must be filed within 60 days from the date of the transaction on which the claim is based.
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