Feds accuse California businessmen of stealing $4.5M in canola to fund luxury lifestyle
A federal grand jury has indicted two businessmen for allegedly stealing $4.8 million worth of canola, selling it and using the proceeds to buy luxury homes, multiple vehicles and take trips.
The multi-count indictment issued against Richard Best, 68, of Fresno, and Shawn Sawa, 46, formerly of Clovis, charges them with conspiracy and wire fraud, said U.S. Attorney Phillip A. Talbert.
Canola is a plant crop used to make oil and cattle feed.
Best’s attorney Jeff Hammerschmidt said his client denies the allegations. He says Best was the victim of extortion from Shawa who threatened to cut off future business dealings with his employer, Archer Daniels Midland.
Best has filed a lawsuit against ADM and Shawa, alleging several issues including fraud, breach of contract and negligent interference with contract.
According to court documents, from 2015 through 2017, Best and Sawa took the canola from customers who hired Best’s company, RBT to transport the product from train to truck.
RBT is known in the industry as a transloading company. This type of operation specializes in transferring bulk commodities, like canola, from one mode of transportation to another mode.
Court records reveal that the alleged victims sent hundreds of thousands of tons of their canola and other commodities to RBT for delivery to their customers. Sawa was the manager of one of the victim’s branch offices in Fresno and had a close relationship with Best, according to the court documents.
Best and Sawa allegedly sold the pilfered canola through an acquaintance in Texas who used to work in the livestock feed industry. The acquaintance sold the stolen canola to farms and dairies, and distributed the proceeds according to Best’s instructions. This included wire transfers to RBT, Best, and Sawa’s bank accounts. The account that Sawa used was opened in his spouse’s name to try to conceal the scheme, according to court records.
In order to cover their tracks, Best and Sawa caused RBT to send fraudulent inventory reports to the victims, representing that the company had certain amounts of their canola in-stock when, in fact, RBT had significantly lesser amounts, prosecutors allege.
When the owners of the canola began to ask about missing product, Best and Sawa told them it had been destroyed by bad weather when it had actually been stolen, according to court records.
Best and Sawa allegedly used the proceeds from the scheme to cover RBT’s operating expenses, purchase luxury homes and multiple vehicles, take trips, and hire private karate teachers, among other expenses.
If convicted, Best and Sawa face maximum statutory penalties of 20 years in prison and a $250,000 fine for each of the conspiracy and wire fraud counts.
This story was originally published September 2, 2022 at 5:00 AM.
