A northeastern Iowa cattle producer is serving more than 15 years in federal prison after pleading guilty to livestock theft, wire fraud, and making false statements in bankruptcy proceedings. Michael Wayne Butikofer, 54, of Monona, Iowa, was sentenced in October 2024 and ordered to pay over $5.7 million in restitution following a wide-ranging scheme involving investor fraud, misuse of federal pandemic funds, and abuse of foreign agricultural workers.
Background:
Butikofer operated Fawn Hollow, a custom cattle-feeding business in Clayton County that was not registered under the USDA’s Packers and Stockyards Act. Between 2020 and 2022, he convinced multiple investors to let him sell their cattle in his name, then kept the proceeds—fraudulently pocketing more than $2.5 million. He misled a Wisconsin slaughterhouse by claiming ownership of cattle he did not own, avoiding regulatory oversight meant to protect investors.
In addition to livestock fraud, Butikofer filed false applications for over $1.2 million in COVID-19 assistance through the USDA’s Coronavirus Food Assistance Program (CFAP) and secured a $1.5 million Economic Injury Disaster Loan from the Small Business Administration under false pretenses.
His criminal activity extended to labor violations. Butikofer exploited South African H-2A workers, subjecting them to unsafe housing, threats, and abuse. In one case, a worker and his family were forced to live in an unheated camper without water or electricity. Federal agents rescued several workers in 2023 and 2024, and a previous civil judgment in 2020 awarded $247,000 to three victims under labor trafficking laws.
2025 Update:
Court-ordered restitution is ongoing. In June 2025, federal authorities approved partial distributions to victims, including $1.4 million to Wendle Cattle Company and additional payments to the U.S. government and Peoples State Bank. Butikofer, currently in federal custody, is prohibited from participating in any future foreign labor programs and remains under a three-year supervised release order following his prison term.
The case stands as one of the most significant agricultural fraud prosecutions in recent years, highlighting the importance of regulatory compliance, labor protections, and accountability for misuse of federal relief programs.
