A cattle farmer in Southern Kentucky lied to a bank about selling cows that he was supposed to keep as collateral on a loan.
Brian E. Shepperd pleaded guilty Oct. 9 to one charge of bank fraud, according to records in federal court.
The charge against Shepperd said that in July 2017, he devised a scheme in Pulaski County to defraud Farm Credit Mid-America.
Shepperd set up a credit line of up to $1.5 million with the bank and was supposed to keep between 900 and 1,700 cattle on hand to maintain the required collateral-to-loan balance, according to his plea agreement.
Instead, he sold most of the cows and didn’t replace them or tell the bank, he admitted.
Over a two- to three-year period, when inspectors from the bank asked Shepperd about the number of cows he owned, he gave them false numbers or showed the inspectors cattle that other people owned and claimed they were his, according to the plea.
Shepperd was released pending sentencing in February.
The charge has a maximum sentence of 30 years.