Fresno businessman Richard Best is heading to prison for stealing nearly $5 million in livestock feed ingredients through a fraud scheme.
U.S. District Judge Jennifer Thurston sentenced Best, 72, to three years in prison for his role in the fraud scheme. He also has to pay $2 million in restitution.
Driving the news: Best ran a fraud scheme with former Clovis man Shawn Sawa, 49, from 2015 through 2017.
- They stole $4.8 million worth of canola from international food processors and sold it for a windfall.
- Best pleaded guilty last October, while Sawa was sentenced last December to 18 months in prison.
Zoom in: Best and Sawa used Best’s train-to-truck transloading company Richard Best Transfer Inc. (RBT) to carry out the scheme.
- Victim food processors sent hundreds of thousands of tons of their canola to RBT for delivery. Sawa was the Fresno area manager for one of the victims and initially received kickback payments from Best to try to increase the supply of canola that RBT received before the scheme began.
- They sold the stolen canola through an acquaintance in Texas who used to work in the livestock-feed industry. That person sold the canola to farms and dairies and distributed the proceeds according to Best’s instructions, including wire transfers to Beset, RBT’s bank accounts and Sawa. Sawa used his spouse’s name on his bank account in an attempt to conceal the scheme.
- RBT emailed fraudulent inventory reports to the victims representing that it had certain amounts of their canola in stock, when RBT actually did not .
- Best and Sawa used the proceeds to purchase luxury homes and multiple vehicles, take trips, hire private karate teachers and to cover RBT’s operating expenses, among other uses.
What they’re saying: “Richard Best treated the agricultural supply chain as his personal inventory, stealing nearly $5 million worth of canola oil for his personal gain,” said U.S. Attorney Eric Grant. “Today’s sentence sends a clear message that those who commit fraud in our agricultural markets will be found and prosecuted. We remain committed to protecting the integrity of our markets and the businesses that play by the rules.”
- FBI Sacramento Field Office Special Agent in Charge Sid Patel added, “Richard Best and Shawn Sawa orchestrated a scheme to steal almost $5 million worth of canola destined for cattle feed and other commodities. The products were then sold to pay Best’s operating expenses and fuel Sawa’s lavish lifestyle. White collar crime is not victimless; victim companies can be devastated by crimes like these and the price of the commodities they sell can also be impacted. This is why the FBI is committed to uncovering corporate fraud and urges anyone with information about crimes like this to come forward.”
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