Man accused in cattle “Ponzi” scheme pleads guilty to one felony, faces more charges

Investigates

Wednesday night we have an update on our KELOLAND News Investigation into one of the biggest fraud cases in the state involving 30,000 missing cattle in Douglas County, S.D.

53 people say they are out millions of dollars in what’s being called a “cattle Ponzi scheme,” run by Corsica Farmer Bob Blom.

Robert Lee Blom

First Dakota National Bank says it’s owed more than $7 million. According to investigators Blom would acquire a certain number of cattle and sell interest in that cattle to as many as eight buyers and none of them knew about it.

While another civil hearing in the case gets underway Thursday in Douglas County, KELOLAND Investigates has learned that Blom has plead guilty to criminal felony charges in McIntosh County, North Dakota for writing bad checks to the tune of $135,000.

Blom is currently out on work release in Faulkton, South Dakota. Blom is also facing grand theft charges in Douglas County for writing a bad check for nearly $106,000 for a cattle payment.

We found Blom on his property near Corsica last spring and tried to ask him where all the money went.

Kennecke: Can I ask you about what happened to the money?
Blom: No comment.
Kennecke: Your neighbors, your relatives say they are out millions of dollars. What happened to the money, Bob?

KELOLAND Investigates has also learned that several agencies are looking into Bloom’s dealings and he may wind up facing federal charges.

We will continue to follow the story and let you know what happens.

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