Throughout the 1980s and 1990s in Kansas, MO, George L. Young, a cattle rancher, along with his associate Kathleen I. McConnell, an accountant, were involved in several business entities that evolved in an illicit cattle buying and management business. They engaged in soliciting funds through fictitious transactions represented to clients and to banks stating that they had more assets than they actually did. Their business owned 17,000 head of cattle. Young and McConnell had misrepresented their business by records which reported that their assets consisted of more than 343,000 head of cattle. Their illicit scheme collapsed in 2001 when the bottom fell out in the cattle market causing them to close their businesses and file for bankruptcy protection. Their fraudulent handling of financial resources led to substantial losses for their investors. As a result, their scheme cost individual investors about $147 million and banks lost approximately $36 million. Assets from the sale of the companies recovered nearly $16 million, which was distributed to the fraud victims. Usually the fraud victims with the most pressing financial needs are paid first. ("United states v.," 2005) I would consider this to be a white collar crime because of the wide range of actions that were involved in this case.
Case 413 F3d 727 United States V. L Young stated that, “Following their indictment on fraud charges, the appellants cooperated extensively with the government agencies that were investigating the fraud” (2005). In a written plea agreement that included waiving their sixth amendment rights and appeal waivers, both Young and McConnell pleaded guilty to mail fraud, wire fraud, making false statements and criminal forfeiture, relating to a scheme to defraud investors in their cattle business. Under a plea agreement, judges may use plea bargaining to reduce the level of penalty.