Quantcast

Nevada, Mo. man sentenced to 37 months for $2 million fraud sche - KOAM TV 7

Nevada, Mo. man sentenced to 37 months for $2 million fraud scheme; $1M restitution

Updated:

NEWS RELEASE FROM THE U.S. ATTORNEY'S OFFICE

NEVADA MAN SENTENCED FOR $2 MILLION FRAUD SCHEME

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Nevada, Mo., man has been sentenced in federal court for his role in a $2 million scheme to defraud Cargill, Inc. by creating fictitious scale tickets for loads of corn that were paid for but never actually delivered to the company’s Butterfield, Mo., feed mill.

Lyle E. Tourtillott, 68, of Nevada, was sentenced by U.S. District Judge Gary A. Fenner on Tuesday, April 1, 2014, to three years and one month in federal prison without parole. The court also ordered Tourtillott to pay $1,012,000 in restitution.

On Sept. 3, 2013, Tourtillott pleaded guilty to two counts of mail fraud.

In a separate but related case, Bob True Beisly, III, 40, of Nevada, and Ronald Bunn, 45, of Deerfield, Mo., were sentenced on March 20, 2014. Beisly was sentenced to two years and 11 months in federal prison without parole (to run consecutively to his state criminal cases) and ordered to pay $559,616 in restitution to Cargill. Beisly pleaded guilty on Aug. 6, 2013, to one count of wire fraud and one count of mail fraud. Bunn was sentenced to two years and three months in federal prison without parole and ordered to pay $754,564 in restitution to Cargill. Bunn pleaded guilty on Nov. 12, 2013, to two counts of mail fraud.

In a separate but related case, Jeffrey Hobbs, 41, of Exeter, Mo., was sentenced on Nov. 21, 2013, to two years and eight months in federal prison without parole and ordered to pay $2,334,180 in restitution to Cargill. Hobbs pleaded guilty on May 20, 2013, to one count of wire fraud. Each of the defendants will be held jointly and severally liable for the restitution payments.

Hobbs worked as a scale operator and pellet mill operator at Cargill’s Butterfield feed mill from December 1999 until March 2013. When a delivery truck would arrive at the feed mill, Hobbs was responsible for weighing each truck and its contents. Once the truck was weighed, Hobbs created a scale ticket for the company that delivered the grain, corn or feed. A copy of the scale ticket was sent to Cargill’s headquarters in Minneapolis, Minn., for processing and payment to the trucking company.

Tourtillott, Beisly and Bunn approached Hobbs in 2002 about creating fictitious scale tickets for non-delivered loads of corn as a way to make money and ultimately defraud Cargill. Hobbs began creating completely fictitious scale tickets for Tourtillott, Beisly and Bunn for the delivery of loads of grain, corn or feed that did not truly exist. Hobbs referred to these as “ghost loads.”

Hobbs initially received $300 in kickbacks for each “ghost load,” which was later increased to $500 in cash for each “ghost load.”

Tourtillott worked as a driver for his brother, the owner of T&T Grain, which held contracts with Cargill to deliver feed or grain to the Butterfield feed mill. Tourtillott admitted that he received fictitious scale tickets from Hobbs for deliveries that were never actually made. Once Hobbs provided Tourtillott with the fictitious scale ticket, Tourtillott would pay a kickback to Hobbs and later receive payment from Cargill. On several occasions, investigating agents conducted undercover audio and video recordings, which confirmed that Tourtillott worked with Hobbs in obtaining fictitious scale tickets at the grain feed mill.

Beisly owned and operated K&B Grain. Beisly obtained contracts with Cargill for the delivery of a set number of grain loads that were supposed to deliver grain, corn or another type of product to the Butterfield feed mill. Beisly admitted that he received numerous fictitious scale tickets from Hobbs for deliveries that were never actually made. Beisly also admitted that at least once a week he received a fictitious scale ticket from Hobbs that claimed he had delivered a shipment of grain to the Butterfield feed mill, when in truth and fact, no such shipment or delivery was made. Shortly after the fictitious scale tickets were created by Hobbs, Beisly received a payment from Cargill.

Bunn owned and operating RB Grain. Bunn was contracted through The Scoular Company to transport shipments of wheat, corn and grain to the Cargill feed mill in Butterfield. Bunn also admitted that he received numerous fictitious scale tickets from Hobbs for deliveries that were never actually made. Once Scoular received a payment from Cargill based on the submission of a fictitious scale ticket, Scoular issued a check to Bunn based on the delivery of wheat, corn or feed that was never delivered.

Cargill officials discovered the fraud when the amount of grain, corn or feed that was being paid for was inconsistent with the amount they actually received. Over a span of nine years, this fraud scheme caused losses to Cargill of approximately $2 million.

These cases were prosecuted by Assistant U.S. Attorney Patrick Carney. They were investigated by the FBI and the Missouri State Highway Patrol.

# # #

  • Local NewsMore>>

  • Mercy Clinic Columbus Welcomes New Physician

    Mercy Clinic Columbus Welcomes New Physician

    Tuesday, September 16 2014 3:23 PM EDT2014-09-16 19:23:15 GMT
    Columbus, KS - James L. Compton, DO, joined Mercy Clinic Family Medicine in Columbus, Kansas on September 16. Dr. Compton received his medical education from the Kirksville College of Osteopathic Medicine, Kirksville, MO and completed his internship at Oklahoma Osteopathic Hospital in Tulsa, Oklahoma.He is board certified in family medicine and has been in private practice and emergency medicine. He is a member of the American Osteopathic Association, American College of Osteopathic Family Ph...More >>
    Columbus, KS - James L. Compton, DO, joined Mercy Clinic Family Medicine in Columbus, Kansas on September 16. Dr. Compton received his medical education from the Kirksville College of Osteopathic Medicine, Kirksville, MO and completed his internship at Oklahoma Osteopathic Hospital in Tulsa, Oklahoma.He is board certified in family medicine and has been in private practice and emergency medicine. He is a member of the American Osteopathic Association, American College of Osteopathic Family Ph...More >>
  • SEK-CAP Closes Waiting List for HUD Program on September 30

    SEK-CAP Closes Waiting List for HUD Program on September 30

    Tuesday, September 16 2014 3:12 PM EDT2014-09-16 19:12:28 GMT
    Girard, KS – The Southeast Kansas Community Action Program (SEK-CAP will close the waiting list for the U.S. Department of Housing and Urban Development (HUD) Section 8 Housing Choice Voucher (HCV) program on September 30th, 2014. All eligible, complete applications received prior to the deadline will be reviewed and added to the waitlist.The Section 8 HCV Program assists qualifying individuals and families with rental subsidies, based on household income. Applicants must live within SEK-CAP'...More >>
    Girard, KS – The Southeast Kansas Community Action Program (SEK-CAP will close the waiting list for the U.S. Department of Housing and Urban Development (HUD) Section 8 Housing Choice Voucher (HCV) program on September 30th, 2014. All eligible, complete applications received prior to the deadline will be reviewed and added to the waitlist.The Section 8 HCV Program assists qualifying individuals and families with rental subsidies, based on household income. Applicants must live within SEK-CAP'...More >>
  • Buffalo Wild Wings - Joplin hosting 2nd Annual Coats for Kids

    Buffalo Wild Wings - Joplin hosting 2nd Annual Coats for Kids

    Tuesday, September 16 2014 3:03 PM EDT2014-09-16 19:03:57 GMT
    Joplin, MO - Buffalo Wild Wings of Joplin is hosting its 2nd Annual Coats for Kids drive. Bring in a clean, gently used coat for donation and BWW will give you a $5 BWW Gift Certificate* to use on a future visit. All coats collected will go to kids here at the Boys and Girls Club.*Maximum of 4 gift certificates per person.More >>
    Joplin, MO - Buffalo Wild Wings of Joplin is hosting its 2nd Annual Coats for Kids drive. Bring in a clean, gently used coat for donation and BWW will give you a $5 BWW Gift Certificate* to use on a future visit. All coats collected will go to kids here at the Boys and Girls Club.*Maximum of 4 gift certificates per person.More >>
Powered by WorldNow

KOAM - Licensed to Pittsburg, Kansas
Send tips, ideas and press releases to: tips@koamtv.com
Send newsroom questions or comments to: comments@koamtv.com
Phone: (417) 624-0233 or (620) 231-0400
Web comments or questions: webmaster@koamtv.com
Newsroom Fax: (417) 624-3158

Powered by WorldNow All content © Copyright 2000 - 2014 WorldNow and KOAM. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.