Information on the Agridime Receivership

Information on the Agridime Receivership



Last Revision: October 21, 2024


On December 11, 2023, the Securities and Exchange Commission obtained a temporary restraining order, asset freeze, the appointment of a receiver, and other emergency relief against Agridime LLC, Josh Link, and Jed Wood (collectively, the “Defendants” or “Receivership Defendants”) in the U.S. District Court for the Northern District of Texas, Fort Worth Division. The SEC’s complaint, which was unsealed on December 13, 2023, alleges that the Defendants have raised at least $191 million from more than 2,100 investors in at least 15 states by offering and selling investments related to the supposed purchase and sale of cattle. However, as alleged in the complaint, the Defendants did not purchase nearly enough cattle or generate sufficient revenues from cattle operations to deliver the promised returns. Instead, the complaint alleges that, since December 2022, the Defendants have used at least $58 million of new investor funds to make Ponzi payments to prior investors and more than $11 million to pay undisclosed sales commissions to Wood, Link, Link’s wife, and other Agridime sales representatives.


The Court presiding over the case found that the appointment of a receiver is necessary and appropriate for the purposes of marshaling and preserving all assets of the Receivership Defendants, and accordingly entered an Order Appointing Receiver on December 11, 2023. A copy of the Order Appointing Receiver is available here. A copy of the SEC’s complaint is available here.


The Court has scheduled a hearing for January 9, 2024, on the SEC’s motion for a preliminary injunction.


The Receivership Order appointed Mr. Steve Fahey as Receiver over all assets of the Receivership Defendants. As Receiver, Mr. Fahey works as an agent of the Court. He does not represent the SEC or any other party, but instead has been ordered to marshal and preserve all assets of the Receivership Defendants.  He will be seeking information about and from all affected investors and creditors, providing updates about the progress of the SEC’s suit, and updating this webpage concerning the progress of his investigation.


You may email Mr. Fahey at receiver@agridime.com. Alternatively, you may leave a message for him at 682-301-0330, and your call will be returned as soon as possible. Thank you for your patience.



UPDATES:


January 8, 2024


  • On Friday, January 5, 2024, U.S. District Judge Mark T. Pittman held a preliminary injunction hearing at the courthouse in Fort Worth, Texas. SEC trial counsel, the receiver, and Jed Wood’s counsel were in attendance; Josh Link was not present and he did not have counsel at the hearing on his behalf. Judge Pittman indicated that he intended to enter the preliminary injunction against Wood, Link, and Agridime LLC in a written order that will be entered by January 9, 2024. When the order is issued, it will be linked to on this page.


  • In light of the SEC’s suit and Agridime’s receivership, many investors have asked how their cattle contract investments should be treated for federal tax purposes. While the receiver cannot give tax advice, all investors are encouraged to consult a tax professional regarding this matter and how their investment should be treated on their 2023 taxes and going forward. Given that the SEC’s complaint alleges that this matter involved a Ponzi scheme, please be aware that the IRS publishes guidance for impacted taxpayers and tax professionals that may be applicable as this matter moves forward – this guidance can be found at https://www.irs.gov/newsroom/help-for-victims-of-ponzi-investment-schemes. 


January 23, 2024


  • Based on findings made at a hearing on January 5, 2024, U.S. District Judge Mark T. Pittman entered a preliminary injunction against Jed Wood, Josh Link, and Agridime LLC (written order is here). This order essentially continues for the pendency of the SEC case and holds in place the injunctive relief and asset freeze ordered in the Court’s initial Temporary Restraining Order. There are no court hearings currently scheduled. Future hearing dates will be posted on the website whenever they are scheduled.


  • The receivership is continuing its efforts to identify, maintain, and protect the company’s assets. These assets fall into roughly four groups: the company-owned cattle, the inventory of meat, company real estate, and company equipment. 


  • With regard to the cattle and meat, we have found Agridime’s records to be, at a minimum, outdated and inaccurate. Our understanding is that Agridime currently owns approximately 8,000 head of cattle. The cattle are spread across 18 different locations throughout the Midwest which has made it challenging to determine the exact number of cattle owned by Agridime. We believe that Agridime’s inventory of meat is the company’s single most valuable asset, and we are working to get a reliable valuation of that inventory. We are continuing to operate the company’s wholesale and retail meat sales business. Wholesale meat sales have been strong, but retail sales of meat have been negatively impacted by the revelations regarding Agridime’s operations. We are actively working to increase both wholesale and retail sales. 


  • Many of you have reached out and provided copies of your cattle contracts and contact information since hearing the news of the court case. Agridime has good internal records of all the cattle contracts, and we are preparing a summary of what is owed to each investor. In an effort to expand our contact information for investors (we only have email addresses readily available), we are opening a web portal for investors here to register their contact and contract information with the receivership. A few notes on this: a) there is no deadline to register at this time; b) investors do not need to answer every question, but providing contact information that could be used as an alternative to email is appreciated; c) we are compiling a complete list of investors’ emails so we can notify all investors of this site, including those that are not aware of this webpage; and d) when we have finalized a preliminary report of what is owed to each investor on pending cattle contracts, we will utilize this information to contact investors and ask them to verify our records against their information.


February 27, 2024


  • On February 23, 2024, U.S. District Judge Mark Pittman issued an order in the SEC v. Agridime LLC, et al. case requiring attorneys for the parties to meet “as soon as practicable” to conduct an in-person scheduling conference “to (1) consider the nature and bases for their claims and defenses, (2) assess the possibilities for a prompt resolution of the case, (3) make or arrange for the disclosures required by Federal Rule of Civil Procedure 26(a)(1), and (4) prepare the joint [scheduling] report” that is due to the Court by March 8, 2024. The mandatory joint report will contain a lot of information for the Court’s consideration, including:


  • (1) A statement detailing the date on which the Scheduling Conference was held, the location of the Scheduling Conference, the names of the attorneys present, a statement on whether meaningful progress toward settlement was made, and a statement on the prospect of settlement—without disclosing settlement figures;
  • (2) A brief statement of the claims and defenses;
  • (3) A proposed time limit to amend pleadings and join parties;
  • (4) A proposed time limit for dispositive motions (e.g., summary judgment);
  • (5) A proposed time limit for initial designation of experts and responsive designation of experts;
  • (6) A proposed time limit for objections to experts (e.g., Daubert and similar motions);
  • (7) A proposed plan and schedule for discovery, a statement of the subjects on which discovery may be needed, a time limit for completing factual and expert discovery, and a statement of whether discovery should be conducted in phases;
  • (8) A statement on whether any limitations on discovery need to be imposed, and if so, what limitations;
  • (9) A statement on how to disclose and conduct discovery on electronically-stored information (“ESI”) and any statement on disputes over disclosure and discovery of ESI;
  • (10) Any proposals on handling and protection of privileged or trial-preparation material that should be reflected in a Court Order;
  • (11) A proposed trial date, the estimated number of days for trial, and whether a jury has been demanded;
  • (12) A proposed mediation deadline;
  • (13) A statement on when and how disclosures under FED. R. CIV. P. 26(1) were made or will be made;
  • (14) A statement on whether the parties will consent to a trial (jury or bench) before a United States Magistrate Judge;
  • (15) Whether a conference with the Court is desired, and if so, a brief explanation why; and
  • (16) Any other proposals on scheduling and discovery that the parties believe will facilitate expeditious and orderly preparation for trial and other orders that the Court should enter under FED. R. CIV. P. 16(b), 16(c), and 26(c).


  • There are no court hearings currently scheduled in the SEC v. Agridime case.


  • For purposes of restarting internet retail meat sales, Agridime has changed its name to American Grazed Beef and a new website (www.americangrazedbeef.com) is now “live” and taking meat orders.Agridime’s retail meat sales had to be halted when credit card companies no longer wanted to work with Agridime due to the federal court case, which caused a six-week hiatus in our retail operations as we worked to put a new organization and website in place.The company’s employees greatly appreciate the messages of support and encouragement received from loyal customers as the new retail operation was stood up.The key feature of the new website and sales operation will continue to be the top-notch farm-to-table beef products sourced from the company’s cattle being raised at two farms in Kansas – Morgan Creek Farms and Goracke Farms.


  • The investigation continues into Agridime’s business activities (including a forensic accounting investigation of the company’s financial records) and the identification and realization of company assets continues.With regard to the cattle and meat assets, since the last update we have revised the count of cattle owned by Agridime down to approximately 6,500.We currently estimate that Agridime’s inventory of meat is the company’s single most valuable asset at approximately $15-20 million. Wholesale meat sales continue to be strong, and, as noted above, retail meat sales have restarted on the American Grazed Beef website. We will continue to actively work to increase both wholesale and retail sales.


March 22, 2024


  • Some investors have asked if it would be possible for the Receivership to provide a letter regarding the Agridime matter that could be given to their tax attorneys and/or accountants for use in preparing 2023 tax returns. After consultation with the tax professionals assisting the Receivership, we have prepared the following letter, https://irp.cdn-website.com/1777a853/files/uploaded/Agridime_letter_Ponzi_tax_treatment.pdf. As our investigation advances, what we can say on this matter likely will change, and we may update this letter accordingly.


April 29, 2024


  • On April 24, 2024, the SEC filed an unopposed motion for entry of judgment against Joshua Link and Jed Wood after the SEC reached bifurcated settlements with both defendants. Defendants executed documents expressly consenting to the entry of judgment, which: (a) permanently restrains and enjoins Defendants from violating Section 10(b) of the Securities Exchange Act of 1934; (b) permanently restrains and enjoins Defendants from participating in the issuance, purchase, offer, or sale of securities; (c) permanently restrains and enjoins Defendants from acting as an officer or director of any issuer of securities registered under Section 12 of the Securities Exchange Act; and (d) ordered disgorgement and civil penalty to be determined upon a motion by the SEC.


  • On April 25, 2024, the Court granted the SEC’s unopposed motion and signed Final Judgments against Link and Wood in accord with their consents.


  • Below are links to the SEC’s unopposed motion and the Final Judgments.







  • The Receiver believes this is a good result for the SEC, the investor victims, and for the receivership proceeding, which is continuing. Further updates on the status of the receivership proceeding will be provided in a forthcoming report to be filed with the Court. 


May 1 , 2024


  • Yesterday, the Receivership filed its first quarterly report with Judge Pittman. Below are links to the report and its exhibits.



July 8, 2024


  • There are three main efforts that the Receivership is working on at this time and wanted to update you on. First, negotiations continue regarding a sale of the Agridime/American Grazed Beef assets (e.g., cattle, meat, land, and equipment) to an interested investor group. This process obviously takes time, as there are several administrative requirements that we must complete before a proposed purchase agreement can be finalized; for example, under federal law, the receivership must get three separate appraisals for each parcel of property being sold, which is not a quick process. That said, if and when terms are reached on this asset sale, we intend to submit the purchase agreement to the Court for a 30-day review and objection period before approval of the sale is sought and closing can take place.


  • Second, we intend to file within the next couple of weeks a motion to the Court outlining the forensic accounting analysis of Agridime between 2021 and December 2023, which will provide insight into the company’s operations during that time period and whether the company was paying returns on older investor contracts with money received from new investors.


  • And finally, by the end of July we hope to provide each investor with an emailed letter outlining our calculation of the amounts owed to each investor on pending cattle investment contracts. Investors will have 30 days to review these calculations and notify us of any issues. This process has taken a bit longer than first anticipated due to the complicated analysis necessary to confirm monies invested by and payments made to specific investors; there were approximately 40,325 transactions made by Agridime between 2021-2023, and it took a bit of work in the company’s bank records to determine what amounts were being paid to whom.


  • We appreciate all your patience as we work through the above issues with your assistance. Please note that the above-described filings with the Court will be posted on this website after they are filed.


July 29, 2024


  • On Friday, July 26, 2024, the Receiver filed the attached motion asking the Court to make a determination that Agridime LLC operated as a Ponzi scheme from October 2021 to December 2023. Should this so-called "Ponzi presumption" be applied in this case, the receivership would have additional power to claw back Ponzi profits from individuals who exited the scheme with profits or sales commissions on cattle contracts sold. For the best summary overview of what was happening with Agridime in this 2021-2023 period, please read the declaration of the receivership's forensic accountant, Madhu Ahuja, which is attached at pages 31-52 of this document. In her declaration, Ms. Ahuja explains her thorough analysis of the company's books and records with several devastating charts and tables demonstrating her conclusion that the company operated as a Ponzi scheme in this time period.


August 14, 2024


  • We wanted to update you on several matters:


  1. Yesterday, the Court granted the Receiver's Motion to Declare Agridime a Ponzi Scheme, finding that Agridime was a Ponzi scheme starting on October 1, 2021. The Court's order is attached, along with Josh Link's response, which objected to labelling Agridime as a Ponzi scheme but did not object to the relief sought by the Receiver.
  2. Court's Order
  3. Josh Link's Response
  4. We apologize for the delay, but the Receivership is not yet ready to send full accounting of loss to each investor, as we had originally hoped to do by now. We have had to subpoena additional supporting documentation from Agridime's bank to verify some of the investor payments, so consequently our final accounting of loss has not yet been completed. We anticipate this will happen in later August, and we will update the receivership page when we start sending letters.
  5. The Receivership recently filed its second quarterly status report with the Court, and that report is attached.
  6. Quarterly Status Report
  7. The Receivership continues to negotiate with a potential purchaser of the assets of Agridime and American Grazed Beef. Any purchase agreement resulting from these negotiations will be submitted to the Court (and posted here) for a 30-day objection period, before the Receivership seeks Court approval for the sale and then closes on the transaction.


September 25, 2024


  • We have two updates:


  1. First, the receivership has entered into a purchase agreement with an investor group based in North Dakota to purchase the assets of Agridime and American Grazed Beef. These assets include the remaining frozen meat supply, the company's equipment, and nine parcels of land in Kansas and Illinois. The final purchase price will be set at closing (due to ongoing meat sales, the inventory of meat may change) but is currently estimated to be $15.7 million. The purchaser intends to continue operating American Grazed Beef, and has also agreed to pay 20% of any future profits to the receivership for a period of three years to benefit the investor victims. The Court is allowing objections to the sale to be made by October 2, 2024, and will have a hearing to consider approving the sale on October 7, 2024. If the sale is approved, it is anticipated the transaction will close shortly afterwards. The Court-ordered notice of sale is posted here. The parties' purchase agreement can be reviewed here.
  2. The sale of Agridime's assets has been of central importance to the receivership, and with that complicated transaction now before the Court, we will turn to getting notices of the amounts owed to each investor emailed to each of you. We will start getting these emails out on October 1st, and due to the large number of investors and the personalized information we are sending, we anticipate the entire process to take three weeks. Thus, if you have NOT received a notice by October 22nd, please contact us. Otherwise, there will be instructions with the notice emailed to you on how to handle any response to the notice you receive. Thank you very much for your patience during the audit process and with the delay in preparing these notices.


October 21, 2024


  • U.S. District Judge Mark T. Pittman has approved the receivership's motion to sell the assets of Agridime. The Court's Order is attached here. The asset sale is expected to close on or about October 28, 2024.


  • Due to extensive preparations for the sale closing, the receivership has been delayed in getting emails with the calculations of amounts owed out to each investor victim, and this process will take a bit more time. No one will be left out, so if you have not yet received a letter from us, please rest assured that we will contact you in due course. We will post a notice at this website when we have completed notifications of all individuals. We are trying to complete this process as accurately and expeditiously as possible, but there are more than 2,000 victims to contact and we want to take care that these calculations are done correctly. As always, thank you for your patience as we continue this process.




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