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October 27, 2011

Waukomis man charged with embezzlement from cattle company

By Cass Rains, Staff Writer Enid News and Eagle

A Waukomis man is facing up to 10 years in prison after being arraigned Thursday on a felony charge of embezzlement.

Terry Gene Maddox, 50, also faces a fine of up to $10,000 if convicted on the charge accusing him of taking a large sum of money from a local cattle company between May 2009 and October.

The case stems from an investigation by Special Agent Donnie Crain, with the Investigative Services Unit of Oklahoma Department of Agriculture, Food and Forestry.

According to an affidavit filed in the case, Crain received information in May and June from a couple concerning their partnership with Maddox in a cattle-raising operation.

In October 2010, the couple entered into their partnership with Maddox. Maddox  previously had worked for the couple when they had a similar agreement with another man.

The couple said it was agreed Maddox would supply the labor to tend to the cattle and attend the sales, according to the affidavit. He would receive a salary of $2,500 until the couple recouped their investment, then profits would be split equally.

The man opened an account for the partnership in Hennessey and Maddox was placed on the account so he could write checks for cattle purchases and business expenses.

About July 2010, the man told Crain he noticed there seemed to be a lot of money being spent from their partnership account, with many checks written by Maddox without explanation or receipts, according to the affidavit. The man said he questioned Maddox but could not get a straight answer from him. He said Maddox would agree to bring the receipts but would never do so, according to the affidavit.

The man found out Maddox had sold more than 120 head of cattle at Winter Livestock in 2009 and 2010. The man said he asked Maddox about the number of cattle the partnership owned and Maddox would not give him a straight answer, according to the affidavit.

When the man attempted to conduct his own count, Maddox padlocked the gate of the pasture they’d rented to keep cattle, according to the affidavit. When he did gain entry, the man said they were short 50 head of what Maddox had told him.

The man said in December 2010, Maddox admitted he’d been making unauthorized personal purchases on the partnership account, according to the affidavit. Maddox admitted to purchasing a goat trailer on the account and a Polaris Ranger ATV for his family to use. Maddox admitted to taking $91,761.99, according to the affidavit.

Maddox also admitted to the couple he’d sold cattle belonging to the partnership and kept the money and had reimbursed himself for purchases of cattle he never made, according to the affidavit. The man told Crain he believed Maddox had taken 51 head of cattle when they were in their old partnership with the other man and 61 head of cattle since their sole partnership with Maddox.

The man noted there was no way of determining a shortage of calves, because he only had the numbers Maddox had provided him.

Maddox appeared Thursday before Special District Judge Brian Lovell. He was ordered to return to court Dec. 12 for a bond appearance. He is free on $15,000 bond.

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