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Federal Charges Against Former Livestock Company
The man who once headed a local livestock company until it shuttered over two years ago is facing federal charges in the case.

Court records from US District Court in Rock Island indicate a federal grand jury indicted Richard Anderson and Elbea Edward Malone on 10 counts of bank fraud, and one count of Engaging in Monetary Transactions in Criminally Derived Property.

The charges state that Anderson, owner of Galesburg Livestock Sales, and Malone, operator of a feedlot in Abingdon, engaged in what the indictment calls a check kiting scheme from September to November of 2009.

Check kiting, the indictment says, is a way to artificially inflate bank account balances through, quote, "the serial deposit of worthless checks between bank accounts."

In this case, Anderson and Malone, through their checking accounts, would write checks to each other, taking advantage of the "float" period needed to collect a check, receiving money that did not exist.

Anderson allegedly sent cattle to Malone's firm to be fed.

The two also allegedly provided a phony sales agreement to Anderson's bank -- at the time First Midwest Bank -- in order to obtain a loan.

Anderson and Malone are both scheduled to be in a Rock Island courtroom Thursday to be formally arraigned in the case.

Galesburg Livestock Sales closed in March of 2010 after six-decades in business. Lawsuits were filed then accusing missing cattle and faulty check-writing, among other things.
08 01 12 by Newsroom
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