Corey Cattle Co. namesake faces charge of wire fraud over loan funds diversion
The owner of a defunct Delta cattle operation entangled in multiple federal civil lawsuits in Utah and Colorado is now also facing a federal criminal charge, according to a court filing made last week in Utah’s U.S. District Court.
Michael Corey, whose business Corey Cattle Company is fighting off claims of civil fraud and other allegations by former business partners, was accused on Aug. 24 of violating a federal wire fraud statute for allegedly illegally diverting funds from an October 2018 business loan.
Corey allegedly borrowed $2.3 million from Western Ag Credit Union to purchase 1,800 sprout pods as part of an effort to develop a barley fodder operation to supply lower cost feed for cattle under his company’s care.
According to the information filed by Assistant U.S. Attorney Todd C. Bouton, Corey allegedly spent only a fraction of the funds, only about $470,000, on sprout pods, using the majority instead on repaying an unrelated bank loan as well as on routine operational costs related to his business.
Records in the case indicate Corey owned a 20-percent stake in the cattle company and operated a 950-acre farm.
“Corey Cattle Co. provided custom feeding for cattle owned by Corey Cattle Co. and by others who paid the company a monthly fee to feed their cattle for them,” according to the criminal court filing. “Someone else financed the company (from afar) while, back…
