AMARILLO (CN) – A Texas cattleman has been sentenced to 9 years in prison for a $9.3 million bank fraud. Tyler Holstein, owner of J Bar H Cattle Co. in Hereford, also was ordered to pay nearly $9.3 million in restitution.
Holstein, 34, pleaded guilty in August to making a false statement on a loan application.
Holstein owned and operated the 10,000-head feedyard where cattle were fattened. He financed his business at Happy State Bank in Amarillo.
As a condition of credit, he had to submit borrowing base reports and allow inspections of his feedyard.
Friona Industries, of Amarillo, bought cattle from Holstein, but sometime in 2009, Holstein began feeding cattle that Friona had already purchased. Eventually, Holstein submitted borrowing base reports to the bank claiming that he owned the cattle belonging to Friona, the U.S. Attorney’s Office said in a statement.
Holstein also opened a line of credit at Amarillo National Bank, then sold cattle he had bought with the line of credit from the bank, but did not apply the proceeds of the sale of the cattle to the line of credit as required.
Immediately after his sentencing, Holstein was turned over to the U.S. Marshals Service to begin serving his time.