Broadcaster Press 10 March 24, 2020 www.broadcasteronline.com Corsica Man Indicted For Fraud And Money Laundering In Multi-Million-Dollar Cattle Ponzi Scheme United States Attorney Ron Parsons announced that a Corsica, South Dakota, man has been indicted by a federal grand jury for nine counts of Wire Fraud, six counts of Mail Fraud, and seventeen counts of Money Laundering. Robert Blom, age 58, was indicted on March 3, 2020. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 16, 2020, and pleaded not guilty to the Indictment. The maximum penalty upon conviction is up to 20 years in federal prison, and/ or a $250,000 fine for wire fraud and $500,000 fine for money laundering, 3 years of supervised release, and up to $3,200 to the Federal Crime Victims Fund. Restitution may also be ordered. The Indictment alleges that beginning on or about January 2014 and continuing through February 2019, Blom devised a scheme to defraud investors. Blom operated a custom cattle-feeding business in the Corsica area. As part of his business, Blom solicited investors for groups of cattle. He purchased groups of cattle from various livestock companies and the cattle were raised on feedlots owned or used by him. Blom raised the cattle to maturity and then sold them to processing plants. After the groups of cattle were sold, Blom paid the profits to the investors in the groups. It is alleged, however, that Blom sold the same groups of cattle to multiple different investors. Each invoice should have been used for just one group of investors, but Blom knew that he did not have and could not purchase as many head of cattle as he represented to investors. Sometimes Blom altered the cattle purchase invoices in an effort to conceal that he sold the same group of cattle to multiple different investors. Also as part of the scheme and artifice, Blom falsely and fraudulently represented to investors that he would use their money to purchase groups of cattle and to care for those cattle. Instead, he routinely used money from new investors to pay back old investors. On multiple occasions, Blom mailed invoices and other investment-related documents to investors and several investors mailed their investment payments to him. Also on multiple occasions, Blom received payments from investors, often by check and Blom also paid old investors, often by check. The estimated loss amount at this time is approximately $20 million. The charges are merely accusations and Blom is presumed innocent until and unless proven guilty. The investigation is being conducted by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation Division, and the U.S. Attorney’s Office. Assistance has also been provided by the South Dakota Division of Criminal Investigation, South Dakota Attorney General’s Office, Douglas County States Attorney, Douglas County Sheriff, South Dakota Brand Board, North Dakota Brand Board, and the Montana Brand Board. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case. Blom was released on bond pending trial. A trial date has not been set. Regents’ Executive Director To Step Down PIERRE, S.D. – Paul B. Beran, executive director and CEO of the South Dakota Board of Regents since 2018, announced today he will be leaving the Board of Regents at the end of his current contract, which runs through June 2020. “I have appreciated the last several years working for the Board of Regents, but the board has informed me they want to go a different direction in leadership and I fully understand their right to exercise that change,” Beran said. “I stand ready to help in the transition as the board repositions itself. “I have enjoyed getting to work with members of the board, the presidents and superintendent, legislative leadership, and representatives from Gov. Noem’s Efforts Made To Activate SBA’s Economic Injury Disaster Loan Fund Program In South Dakota PIERRE, S.D. Governor Kristi Noem and her team are working closely with the U.S. Small Business Administration (SBA) to activate the Economic Injury Disaster Loan (EIDL) program in South Dakota. This program would help eligible businesses and nonprofits impacted by COVID-19. “We are working very closely with the SBA to ensure that South Dakota companies negatively impacted by Covid-19 have access to economic assistance,” said Noem. “This is unchartered territory for everyone, including the SBA, but my economic development team stands ready to help businesses and counties work through this process. I’m extremely thankful for the quick response and strong leadership that President Trump and his team at SBA are providing.” DETAILS: Affected small businesses and non-profits need to download, complete, and submit this SBA EIDL Worksheet and Instructions to expedite activation of the EIDL program. Completed forms may be submitted by email to goedinfo@ state.sd.us. Please note, this initial survey form is not a SBA loan application. When the EIDL program is activated, businesses will be contacted to apply directly to the SBA. administration, whom I have worked with over the last two legislative sessions. South Dakota should be proud of its higher education system. All six universities and the two special schools serve the state in a highly coordinated, efficient approach that utilizes shared services in a way that is the envy of many state systems," he said. “The board would like to thank Dr. Beran for his service to our state. He has helped prepare the system to move forward to find greater efficiency and effectiveness in future operations. As the system evolves, the Board of Regents is ready to analyze the system’s functionality in new and innovative ways,” said Regents President Kevin V. Schieffer. “The board wishes him well as he transitions into future opportunities.” Schieffer added that the Board of Regents will announce next steps for the appointment of a new executive director after its April 1-2 regular meeting. Beran said that much has been accomplished over the last two legislative sessions, especially with new opportunities for individual institutions and collaborative programs that include multiple institutions. Dakota State University will advance a high-tech, cyberfocused connection with business and industry by developing a business incubator around technology-based needs, he said. “South Dakota State University and the School of Mines and Technology are working together to develop the Governor’s “next big thing” initiative for bio-products produced from farm and forestry products in South Dakota. The University of South Dakota received state funding to help build a 21st century health sciences facility to prepare our next generation of health care providers. In addition, Black Hills State University, SDSU, USD, and Western Dakota Tech are collaborating to increase the number of nursing and healthcare professionals in western South Dakota,” Beran said. During his tenure here, Beran helped hire a new president at Black Hills State University and a new superintendent for the School for the Blind and Visually Impaired. “I am sure the new and current institutional leaders will provide synergy for positive change and forward movement across this state,” he said. Prior to his time in South Dakota, Beran served as chancellor for the University of Arkansas-Fort Smith for 12 years and for five years as president at Northwestern Oklahoma State University. Graduating? 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A story about the formal position taken by the City of Vermillion and Clay County in response to the COVID-19 pandemic. News that USD and other South Dakota public universities will temporarily move to online classes on March 23 with on-campus, in-person classes scheduled to resume on April 6. A report about the steps that Clay County officials are taking to protect the public and county employees from coronavirus. Full coverage of the University of South Dakota’s women’s basketball team claiming the Summit League Basketball Tournament Championship in Sioux Falls on March 10. And if you want to see: A report on candidates for local elections that are coming up this spring. As spring approaches, we’ll have a story about the condition of county roads and steps that are being taken such as load limits or planned maintenance where needed. 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