Iowa Farmer Sentenced to Over 15 Years for Cattle Theft, Pandemic Fraud, and Forced Labor Scheme

Iowa farmer sentenced to 15 years for stealing $5 million in cattle and pandemic relief funds, ordered to repay $5.7 million in restitution.Photo byThomas M. EvansonUnsplash

A Clayton County farmer was sentenced to over 15 years in federal prison for stealing more than $5 million in livestock and fraudulently obtaining pandemic relief funds, the U.S. Attorney's Office for the Northern District of Iowa announced Friday.

Michael Wayne Butikofer, 54, of Monona, was sentenced on October 10, 2024, after pleading guilty to charges of livestock theft, wire fraud, and making a false bankruptcy declaration.

Butikofer operated custom cattle feeding operation through his business, Fawn Hollow, in northeast Iowa, according to evidence in the case.

Prosecutors said Butikofer stole more than $2.5 million by convincing cattle investors from across the U.S. to allow him to sell their cattle under his name. He then sold the cattle to a Wisconsin slaughterhouse, falsely claiming ownership of the livestock.

By concealing the true ownership, Butikofer evaded federal registration and bonding requirements, according to the U.S. Department of Agriculture (USDA).

Butikofer also defrauded the USDA’s Coronavirus Food Assistance Program (CFAP) of over $1.2 million by submitting false claims for cattle he did not own, authorities said.

Additionally, he secured more than $1.5 million in Economic Injury Disaster Loans (EIDL) from the Small Business Administration (SBA) through fraudulent financial statements and later used the funds to file for bankruptcy.

The U.S. Attorney’s Office stated that during bankruptcy proceedings, Butikofer perjured himself multiple times and misled over 100 creditors, delaying their legitimate collection efforts.

“The defendant in this case was held accountable for a number of serious fraudulent activities,” said Justin Bundy, Special Agent in Charge, Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG).

“He converted more than $2.5 million through a cattle investment scam and used those funds to enrich himself, at the expense of unsuspecting victims. He also falsely represented his financial condition and the intended use for SBA loan funds and defrauded the USDA of more than $1.5 million in funds designed to assist livestock producers during the COVID-19 pandemic."

In a separate civil case, Butikofer was found liable for forced labor violations involving H-2A migrant workers from South Africa. The court noted that workers lived in substandard conditions, without hot water or furniture, and were subject to threats and physical abuse.

Butikofer was ordered to pay more than $5.7 million in restitution and forfeit $500,000. He will also repay $5,000 in attorney fees. Following his 188-month prison term, he will serve three years of supervised release. There is no parole in the federal system.

In addition to the criminal charges, Butikofer agreed to pay the full $247,000 judgment to the workers and permanently cease participation in any U.S. Department of Labor or Homeland Security foreign labor programs.

United States Attorney Timothy T. Duax stated, “Butikofer treated his victims and the rule of law with equal contempt, and fully deserves his fifteen-year sentence to federal prison. This office will continue to aggressively prosecute people who defraud the government through the agricultural sector, the bankruptcy court, and by the mistreatment of foreign workers.”