Former Wood County Rancher Sentenced for Selling Mortgaged Cattle

TYLER — A 26-year-old Ainsworth, Nebraska man has been sentenced in Tyler federal court for misapplying funds owed to the Farm Services Agency. Michael Kord Chapman, a former Wood County rancher, pleaded guilty last August to conversion of mortgaged property. He was sentenced yesterday to five years probation by U.S. District Judge Leonard Davis. Chapman was also ordered to pay restitution of $83,622.42 to the U.S. Department of Agriculture Farm Services Agency.

According to federal prosecutors, between February 18, 2011 and April 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.