Archive for Tuesday, July 27, 2010

Cattleman sentenced in fraud case

July 27, 2010


— An eastern Kansas cattleman has been ordered to spend six months in prison and pay $10 million in restitution for a fraud involving cattle.

U.S. Attorney Lanny Welch announced Monday that 70-year-old Joseph C. Donohue of Greeley also was sentenced to six months of house arrest for one count of bank fraud.

Prosecutors said Donohue admitted he gave false information to Lyons State Bank to obtain loans for cattle. He claimed to have cattle worth more than $18.2 million, when he had only $3 million in cattle.

He also claimed to have 13,267 cattle, but the bank determined he had only 650 cattle to secure the loan.

Donohue also obtained fraudulent loans from Farmers and Merchants State Bank in West Point, Neb., and Farmers State Bank in Garnett, Kan., Welch said.


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