MN cattle rustling probed

Police in St. Paul investigate cattle rustling with a modern twist

SOUTH ST. PAUL, Minn. (AP)--Police in South St. Paul are investigating a high-tech case of cattle rustling involving hundreds of cattle from the Central Livestock Association.

Authorities believe a former veteran employee at the association used some modern tricks to carry out an old-fashioned crime. The man, who has not been charged, was fired last year and had been under investigation ever since.

Authorities believe he stole $2.5 million worth of cattle by using false invoices to perform more than 2,200 transactions with phantom customers he created over several years.

The crime, according to police, involved both advanced computer skills and a position of influence that allowed him to bypass some of the organizations procedures.

"It's my understanding that CLA would end up paying for the cattle twice," said Sgt. Jim Rogers, of the Dakota County sheriff's office, in summing up how the scam allegedly worked.

The members of the livestock association, which runs two auction arenas at its 27-acre South St. Paul stockyards, buy and sell about 600,000 cattle, hogs, sheep and goats a year. The transactions happen fast; most animals are onsite less than 24 hours.

Dakota County Attorney James Backstrom said his office has reviewed some of the evidence and that if charges are eventually filed, it would be the largest theft ever prosecuted by his office.

There's still a big question: What happened to the cattle? "None of the cattle have been recovered," said Jeff Reed, the association's chief operating officer.

"We can show a lot of money going into his account, that he has no way of accounting for," Rogers said of the suspect. "We're not exactly sure how he got rid of (the animals), whether he sold them privately or sold them at auction somewhere."

Date: 10/24/06

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