A South Carolina manager of a bovine artificial insemination firm pleaded guilty last week to rigging bids for the purchase of cattle used either for the direct production of semen or for the development of animals for future semen production.
According to court documents filed in the U.S. District Court in Columbus, Ohio, Herbert D. Lutz, 56, of Chester, S.C., pleaded guilty to conspiring to rig bids between at least as early as October 2018 and at least as late as May 2024. In advance of cattle auctions, Lutz and his co-conspirators agreed which company would win the bid. During the sales, the agreed-upon losing firm would either not bid or would submit an intentionally losing bid before bowing out to permit the agreed-upon winner to prevail. Through the efforts of Lutz and his co-conspirators, Lutz’s employer was able to acquire cattle worth over $1.6 million through rigged sales.
Bovine artificial insemination firms produce, market and sell bovine semen for artificial insemination, research and genomics. As part of their business, such firms purchase cattle from third parties, including through competitive public auctions, either for the direct production of semen for sale or to develop animals for future production…