A Central Valley businessman siphoned off millions of dollars’ worth of livestock feed ingredients, moving them through a logistics company he controlled before the scheme unraveled in federal court.

“White collar crime is not victimless; victim companies can be devastated by crimes like these and the price of the commodities they sell can also be impacted,” said Sid Patel, special agent in charge at FBI’s Sacramento office.

Federal prosecutors said the operation ran for roughly two years, from 2015 through 2017, and targeted shipments of canola — a commodity commonly used in livestock feed — that were entrusted to Best’s now-defunct transloading company, Richard Best Transfer Inc. Best worked alongside Shawn Sawa, 49, formerly of Clovis, who had access to shipments through his role with a food processor. 

Court records describe how the pair diverted canola shipments sent to Best’s company, which was supposed to transfer goods between rail and truck for delivery to customers. Instead, prosecutors said, they sold the product through a third party tied to the livestock-feed industry, routing the proceeds through bank accounts controlled by Best and Sawa.

Investigators said the scheme relied on falsified inventory reports that overstated how much canola Best’s company held, masking the shortfall as shipments were siphoned off and sold. The stolen product ultimately generated about $4.8 million, according to court documents.

At one point, as scrutiny intensified, Best provided Sawa with an old cellphone that belonged to his dead mother to avoid detection, believing company-issued devices were being monitored.

The ill-gotten proceeds funded a range of personal expenses, including real estate, vehicles and travel, while also covering operating costs for the business. They also hired a private karate teacher, prosecutors said.

Sawa pleaded guilty earlier and was sentenced in December to 18 months in prison.