CENTRAL VALLEY CORPORATE INSIDER SENTENCED TO 18 MONTHS FOR $4.8M LIVESTOCK FEED THEFT SCHEME

A former Central Valley corporate manager has been sentenced to 18 months in federal prison for his role in a multi-year insider fraud scheme that siphoned nearly $5 million in livestock feed ingredients from international food processors, exploiting his position of trust to divert commodities intended for legitimate agricultural supply chains.

Shawn Sawa, 49, formerly of Clovis, was sentenced in U.S. District Court for the Eastern District of California after being convicted for participating in a coordinated theft operation that ran from 2015 through 2017. The scheme relied on insider access, falsified inventory reporting, concealed financial transfers, and a logistics pipeline designed to quietly reroute valuable agricultural commodities into the gray market.

THE SCHEME: INSIDER ACCESS AS THE ENTRY POINT

Court records show that Sawa conspired with Richard Best, owner of a now-defunct train-to-truck transloading company, Richard Best Transfer Inc. (RBT). Transloading companies serve as a critical logistical link, transferring bulk commodities between rail and truck for final delivery. In this case, international food processors entrusted RBT with massive quantities of canola destined for livestock feed production.

Sawa, who served as the Fresno-area manager for one of the victim food processors, leveraged his internal position to manipulate supply flow. Before the theft scheme fully matured, Sawa received kickback payments from Best to increase the volume of canola routed through RBT. Once the supply channel was established, the operation shifted from manipulation to outright theft.

Over the course of two years, Sawa and Best diverted approximately $4.8 million worth of canola, removing it from legitimate distribution streams and converting it into illicit profit.

FALSIFIED INVENTORY AND CONCEALED SALES

To maintain the illusion of compliance, RBT repeatedly emailed fraudulent inventory reports to the victim food processors. These reports falsely represented that large quantities of canola remained in storage when, in reality, the stock had already been sold.

The stolen canola was moved through an intermediary in Texas with prior experience in the livestock-feed industry. That individual sold the commodity to farms and dairies, disguising its origin and dispersing proceeds according to Best’s instructions. Wire transfers were sent to accounts controlled by Best, RBT, and Sawa.

To further conceal his involvement, Sawa used a bank account opened in his spouse’s name, a step prosecutors cited as evidence of deliberate effort to hide the flow of illicit funds.

LIFESTYLE SPENDING AND OPERATIONAL COVER

Investigators determined that proceeds from the scheme were used to finance a lifestyle far removed from agricultural logistics. Funds were spent on luxury homes, multiple vehicles, private travel, personal services, and even private martial arts instruction. Other proceeds were funneled back into RBT to cover operating expenses, allowing the company to continue functioning as the theft mechanism itself.

As suspicion grew, the conspirators attempted to evade detection. Shortly before the scheme was uncovered, Best provided Sawa with an old cellphone that had belonged to Best’s deceased mother. The device was used as a covert communication channel after concerns emerged that company-issued devices were being monitored by the victim processor.

INVESTIGATION AND SENTENCING

The scheme ultimately collapsed following a federal investigation led by the Federal Bureau of Investigation. Financial tracing, inventory reconciliation, and communication analysis exposed the false reporting, commodity diversion, and concealed transfers.

Sawa’s 18-month sentence reflects his insider role, the duration of the fraud, and the financial damage inflicted on international suppliers and downstream agricultural markets. Richard Best pleaded guilty in October 2025 and awaits sentencing in March 2026, where he faces a potential sentence of up to 20 years in federal prison.

TRJ PERSPECTIVE

This case underscores a recurring vulnerability in industrial supply chains: insider trust paired with opaque logistics. The theft did not rely on cyber intrusion or external sabotage. It relied on access, familiarity, and the assumption that internal managers act in good faith.

Bulk commodity systems move massive volumes with limited real-time verification. When falsified inventory reporting goes unchallenged, physical theft becomes an accounting abstraction rather than an immediate red flag. The use of shell communications, third-party sellers, and concealed accounts shows how traditional fraud techniques remain effective when oversight is fragmented.

Agricultural supply chains underpin food security, pricing stability, and international trade relationships. When insiders convert logistics infrastructure into theft pipelines, the damage extends beyond dollar figures. This sentence serves as a reminder that fraud embedded inside trusted systems carries consequences, even when it hides behind paperwork and rail schedules.

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