United States Attorney
Northern District of Texas

1100 Commerce St., 3rd Fl.
Dallas, Texas 75242-1699

Telephone (214) 659-8600
Fax (214) 767-0978

FATHER AND SON RANCHERS
PLEAD GUILTY TO MONEY LAUNDERING CHARGE

United States Attorney Jane J. Boyle announced that Dimmitt, Texas, residents, Robert Nelson and his father, Daniel L. Nelson, each pled guilty this morning before the Honorable United States District Judge Sam R. Cummings to one count of money laundering and aiding and abetting, in violation of 18 U.S.C. §§ 1957 and 2, as charged in a one count information filed today in federal court in Lubbock. The Nelsons were in the farming and ranching business — purchasing, feeding, medicating and selling cattle.

According to documents filed in court, on August 18, 1998, Robert Nelson and Daniel L. Nelson applied for and obtained a $705,000 loan that was to be used to purchase and medicate approximately 2000 head of cattle. The Nelsons deposited the $705,000 as required by State National Bank into the Nelson Cattle Account at the bank. In January 1999, however, the Nelsons deposited, withdrew, transferred and exchanged $105,000 from the Nelson Cattle Account, which was to be used to purchase and medicate cattle, to other bank accounts from which the funds would not be used for their intended purpose.

Both defendants face a maximum statutory sentence of 10 years imprisonment and a $250,000 fine. According to the plea agreements filed with the Court, the Nelsons each agree to pay $105,000 restitution to the State National Bank of West Texas. In addition, they each agree to pay $100,000 cost of prosecution to the Internal Revenue Service.

U.S. Attorney Boyle commended the investigative efforts of the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Paulina Jacobo.

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