Bozeman dairy fraud victims recover nearly $850,000

McCown was convicted in 2011 after an IRS and FBI investigation into fraud at a Bozeman-based dairy cooperative, according to the release. Three other employees were also convicted in the case.

The U.S. Attorney’s Office said McCown had been sentenced to three years in federal prison and three years of supervised release. The court also ordered McCown and former CEO Michael Ernest Monforton to pay $1.16 million in restitution.

Officials said the money was recovered after the office’s Financial Litigation Unit learned McCown was due a payout from the sale of a business and real property. The unit garnished those funds and paid off the rest of his restitution.

The fraud dated back to October 2007 at Country Classic Dairy in Bozeman, a producer-owned co-op at the time. The release said McCown and three others used co-op money for personal purchases and reimbursements. Country Classic later merged with Seattle-based Darigold in 2010.

According to the U.S. Attorney’s Office, McCown used a co-op credit card for personal items including vehicles, trailers, boats, firearms and an RV. He also took cash advances and recorded those expenses as business costs to hide the fraud.

Todd Wacaser of IRS Criminal Investigation said the recovery showed efforts to repay victims can continue long after a financial crime happened.

He said investigators remain focused on tracing money, finding assets and working with law enforcement partners to recover funds when possible.

Justin Gerken of the FBI Billings Field Office said fraud cases like this reach beyond money because they also damage trust inside an organization and in the community.