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Wood County Man Guilty of Selling Mortgaged Cattle
TYLER, Texas – A 26-year-old Winnsboro, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Michael Kord Chapman pleaded guilty to an Information charging him with conversion of mortgaged property today before U.S. Magistrate Judge John S. Love.
According to information presented in court, between Feb. 18, 2011 and Apr. 7, 2011, Chapman sold approximately 158 head of cattle valued at over $83,400.00 that had been pledged as collateral on a loan from the Farm Services Agency. Instead of paying the loan, Chapman kept the proceeds of the sale for himself and converted them to his own use.
Chapman faces up to 5 years in federal prison at sentencing. A sentencing date has not been set. Chapman has agreed to pay restitution of $83,622.42 to the U.S. Department of Agriculture Farm Services Agency.
This case is being investigated by the U.S. Department of Agriculture, Office of the Inspector General, Office of Investigations, and prosecuted by Assistant U.S. Attorney Jim Noble.