A Texas cattle investment firm, Agridime LLC, has been ordered to pay more than $102 million in restitution following a federal court ruling on a cattle-related Ponzi scheme that defrauded customers. The judgment, issued by the U.S. District Court for the Northern District of Texas, permanently bans Agridime from commodity trading and registration with the Commodity Futures Trading Commission (CFTC).
The CFTC’s enforcement action, initiated in May 2024, accused Agridime and its co-founders, Joshua Link and Jed Wood, of misusing customer funds collected through cattle investment contracts. Customers were told their investments would fund the purchase, feeding, and raising of cattle, but the company failed to buy enough livestock to meet its obligations. Instead, Agridime used new customer funds to pay previous investors—hallmarks of a Ponzi scheme.
Further allegations revealed that millions of dollars in undisclosed commissions were paid to Agridime staff, including Link and Wood. As a result, Link was ordered to pay $815,327.92 in disgorgement, while Wood was ordered to pay $1,472,127.92. Both individuals are permanently barred from trading or registering in any CFTC-regulated market.
Restitution to defrauded customers will be administered through a court-appointed receiver, also managing a parallel enforcement action by the U.S. Securities and Exchange Commission (SEC). However, the CFTC cautioned that repayment is not guaranteed due to limited recoverable assets.
The case underscores regulatory efforts to protect investors in the agriculture and livestock sectors. The outcome serves as a reminder to beef producers and investors to conduct due diligence when engaging in private cattle contracting or investment schemes that promise guaranteed returns.
