Miles City rancher allegedly defrauded Texas loan agency

Posted at 3:50 PM, Apr 05, 2018
and last updated 2018-04-05 17:50:53-04

BILLINGS — A Miles City man is facing a federal wire fraud charge for allegedly making false reports to his Texas ag and land lender in an effort to fraudulently obtain over $410,000.

Darrell Hatley was charged Thursday in U.S. District Court in Billings with one count of wire fraud.

Hatley borrowed money from Capital Farm Credit to pay for operating expenses related to his ranches in Oklahoma, Texas, Wyoming and other states.

As part of the loan agreement, Hatley was required to provide annual financial statements and monthly cattle inventory reports to the lender, according to court documents.

Hatley allegedly misrepresented the number and quality of cattle he maintained to Capital starting in December 2015.

From December 2015 to August 2017, Hatley allegedly overinflated the number of cattle in his possession.

Prosecutors say Hatley’s false reports caused the lender to initiate a wire transfer of $413,537.