Man indicted in federal courtroom over $ 1.2 million farm tools rip-off – St George Information


Picture financial institution | Photograph by Svitlana Unuchko / iStock / Getty Photographs Plus, St. George Information

ST. GEORGE – Indictment filed in St. George U.S. District Courtroom alleges proprietor of Sanpete County farm tools firm defrauded greater than 20 out of greater than $ 1.2 million after conceiving a sequence of fraudulent schemes which have impoverished at the least one monetary establishment by greater than $ 50,000.

Picture of the US Lawyer’s Workplace on Important Avenue in St. George, Utah | Information from Saint-Georges

Ryan Palmer, of Sterling, a city of about 320 residents 73 miles south of Provo, has been charged with three counts, together with financial institution fraud, wire fraud and cash laundering, based on the act. cost filed by Assistant US Lawyer Jay Winward in St. George which was unsealed Wednesday.

The federal prices have been filed following an investigation into the farm tools firm, Palmer Tools LLC, owned and operated by the defendant.

In line with federal prosecutors, the criminal activity allegedly started in 2017, when the accused started devising schemes to acquire cash and property underneath false pretenses, together with one such scheme wherein Palmer advised a number of people who he may promote their tools on consignment. The defendant additionally offered himself as a farm tools dealer, telling potential patrons that he may receive farm tools on their behalf.

Palmer additionally advised a number of patrons that he should buy and ship working farm tools that he owns free of charge. He additionally advised a lot of banks that he owned the tools that was actually on consignment and that he bought tools that he didn’t legally personal.

Amongst different issues, the indictment alleges that Palmer delivered faulty tools to a lot of patrons and altered or eliminated the serial numbers and placards of the tools earlier than promoting it.

In different circumstances, Palmer did not ship tools to patrons as promised and paid homeowners, or solely made partial funds on the product when their tools was bought.

The defendant entered into agreements with the tools homeowners which included stipulations prohibiting the sale of the tools at a value decrease than the agreed value.

Courtroom data describe an incident on October 5, 2018, when Palmer acquired a 1985 Allis-Chalmers 8050 tractor on the market on consignment.

In line with the settlement between Palmer and the proprietor, the tractor, valued at $ 25,000, was to be bought for as a lot as $ 20,000.

Two months later, Palmer and his spouse utilized for a mortgage and used seven items of apparatus as collateral to safe the mortgage, together with the Allis-Chalmers tractor, which the defendant mentioned he owned.

On December 18, 2018, the couple acquired the $ 51,000 mortgage which was deposited into their private checking account at a neighborhood credit score union and from there the funds have been disbursed between a number of accounts.

Inventory Photographs of Sterling, Utah, date unspecified | Photograph courtesy of Flickr, Inventive Commons license, St. George Information

Palmer by no means repaid the financial institution for the mortgage and in addition bought a few of the tools held as collateral for the mortgage.

In late December, lower than two weeks after the mortgage was granted, the defendant bought the tractor and different piece of apparatus for $ 19,450 and allegedly held the funds with out paying the proprietor from the proceeds of the sale.

In complete, the accused defrauded 25 victims out of greater than $ 1.2 million, together with the consignor of the Allis-Chalmers tractor.

The financial institution fraud cost was filed primarily based on proof that the defendant entered into consignment agreements with the sellers, then used this tools as collateral to safe financial institution loans, then bought the tools with out paying the homeowners on the proceeds of the sale.

The indictment says Palmer additionally twisted necessary info to defraud each patrons and sellers as a way to additional the scheme.

The wire fraud cost was primarily based on allegations that Palmer transferred the mortgage quantity of $ 19,450 to a second credit score union account in January 2019.

Cash laundering prices relate to banking transactions, together with the switch of $ 25,000 from the $ 51,000 mortgage that was transferred to a different account in one other financial institution, in addition to the switch of $ 16,000 of funds raised. when promoting the tractor for $ 19,450. Each have been banking transactions ensuing from fraud.

The indictment additionally known as for the confiscation of all property derived from the scheme. Palmer isn’t in custody. He’s scheduled to look in St. George’s U.S. District Courtroom for the primary time on Jan. 11 earlier than trial decide Paul Kohler.

Copyright St. George Information, LLC, 2022, all rights reserved.

Supply hyperlink

About Michael Foreman

Check Also

Brokerages count on FirstCash Holdings, Inc (NYSE:FCFS) to put up EPS of $0.94

Fairness analysis analysts count on FirstCash Holdings, Inc (NYSE: FCFS – Get Score) to report …