Ranchers waiting to receive funds from the now-closed Plainville Livestock Commission are still waiting for resolution.
Much of the commission’s property, including the real property in Plainville, was liquidated during an auction in late June. The commission’s bankruptcy case is still open, although it has been changed from a Chapter 11, which is a reorganization, to a Chapter 7, liquidation.
However, the adversary case filed by Almena Bank is still winding its way through the court system.
Plainville Livestock Commission declared bankruptcy on March 1. Tyler Gillum, 47, and his wife, Camden Gillum, 50, owners of the Plainville Livestock Commission, were federally indicted for an alleged check-kiting scheme May 29.
Dozens of cattle producers were caught up in the Gillums’ alleged scheme after money that was supposed to be set aside to pay cattle sellers was transferred from a custodial account to the Plainville Livestock Auction’s operating account. The Almena Bank froze both accounts, which resulted in bounced checks amounting to tens of thousands of dollars per producer.
The adversary case in federal court is seeking to determine how the $900,000 being held in trust by the court should be divided among livestock producers and creditors.
According to court documents dated Oct. 24, counsel are working on a settlement in the case. The records also said one of the claims might need to go to trial. The next status conference in the case is set for 10:30 a.m. Dec. 12.