Easterday

A federal judge has reset Cody Easterday’s sentencing for defrauding Tyson Fresh Meats to Oct. 4. The delay was sought by Easterday’s lawyer, who had a scheduling conflict.

Easterday had been scheduled to be sentenced Sept. 19. His attorney, Carl Oreskovich, asked for the delay so he can preside as hearing officer at a Washington State Bar Association disciplinary proceeding in Seattle.

The Justice Department did not object to the request, and U.S. District Court Chief Judge Stanley Bastain granted the motion without a hearing. Easterday will be sentenced in Yakima, Washington Federal prosecutors have not filed a recommended sentence with the court.

Easterday Dairy has been trying to reopen a Boardman dairy plant for several years, but a series of setbacks and water quality violations have pushed the business to sue to recoup $14 million in damages or to be released from the purchase agreement.

Easterday pleaded guilty March 31, 2021, to one count of wire fraud. Since then, Bastain has granted several motions to delay sentencing until Easterday finished with bankruptcy proceedings.

Easterday’s two businesses, Easterday Ranches and Easterday Farms, filed for bankruptcy shortly after the fraud was uncovered. A plan to sell the businesses and pay creditors was finalized July 26.

Easterday supplied cattle to Tyson’s meat packing plant in Pasco, Easterday billed Tyson for 265,995 head of cattle that didn’t exist. Over about four years, the fraudulent invoices totaled $233 million, according to court records.

A second victim, identified in bankruptcy court as Segale Properties Inc. of Tukwila, Washington, advanced Easterday more than $11 million to buy and raise cattle. The cattle were not purchased.

Easterday used a significant portion of the fraudulently obtained money to cover losses from commodity futures contracts.

He faces separate allegations that he submitted false cattle inventory, purchase and sales figures to the Chicago Mercantile Exchange. The civil case, brought by the Commodity Futures Trading Commission, has been on hold pending the end of the bankruptcy and criminal cases.