Eastern Washington cattleman Cody Easterday took charge in an effort to make amends after admitting he bilked Tyson Fresh Meats and another victim out of $244 million, according to a 4,000-word statement submitted to a bankruptcy court.

The statement depicts Easterday and his wife and mother rallying employees after he filed for bankruptcy last year and then pleaded guilty to wire fraud.

Most employees of the family’s cattle operations, Easterday Ranches, wanted to leave, according to the statement. “They did not leave because Cody asked them to stay for the benefit of Tyson and Ranches.”

Easterday is scheduled to be sentenced in U.S. District Court June 13 for fraud. In recommending a sentence, the Department of Justice will take into account whether Easterday took responsibility for his crime.

Attorneys who have been battling the Easterday family in bankruptcy court distanced themselves from the statement. The eight-page memo was attached to an agreement setting a framework for distributing money from the liquidation of Easterday Ranches and Easterday Farms.

U.S. Bankruptcy Court Judge Whitman Holt in Yakima said April 19 the agreement looked good, but asked who the statement was written for. “I’m just curious. Is the audience for that creditors or me or someone else?” he asked.

“It’s creditors and parties with interest in the case,” said attorney Tim Conway, who represents Cody Easterday’s mother in the bankruptcy case.

“That memo quite frankly doesn’t even touch half of what the family did and a lot of it has gone un-noted by virtually everybody except for those heavily involved,” Conway said.

Tyson contracted with Easterday to supply cattle. Easterday billed Tyson for more than 265,000 head of cattle that didn’t exist.

He faces up to 20 years in prison, though in a plea deal, U.S. attorneys agreed to recommend a term within or below federal sentencing guidelines. Easterday’s post-plea actions will be considered in calculating a recommendation, according to the plea agreement.

U.S. District Judge Stanley Bastian has twice postponed Easterday’s sentencing to give him time to sell his farming and ranching operations to raise money for creditors. The two largest creditors are the victims, Tyson and Segale Properties of Tukwila, Wash.

The bankruptcy settlement does not bar Tyson and Segale from seeking full repayment. “It does not, of course, resolve all the issues that will be determined in criminal proceedings, such as restitution,” said Jeff Misley, Cody Easterday’s bankruptcy lawyer.

The Department of Justice must approve the bankruptcy settlement and is reviewing it, U.S. Assistant Attorney Brian Donovan told Holt. “The fact that the two victims in our case, Tyson and Segale, are in agreement with it is, of course, very persuasive to us,” he said.

The bulk of the restitution, $233 million, is owed to Tyson. The second victim, identified in the plea agreement as “company 1,” advanced Easterday more than $11 million in 2020 to buy and raise cattle. Easterday was to repay the advance plus 4% interest. The cattle were not purchased.

Efforts to obtain comment from Tyson and Segale were unsuccessful.