CORSICA, S.D. — First Dakota National Bank asked Friday for permission to sell land currently owned by the couple involved in a multi-million-dollar cattle feedlot foreclosure case.
If approved, the motion would allow the bank to sell Robert and Becky Blom's land to three people by the end of the month for a total of $1.6 million. The bank's initial complaint against the Bloms stated they owed a principle amount of more than $6.7 million, in addition to accruing interest, and 74 total parties have claimed to date that the Bloms owe them money.
The Bloms, court-appointed receiver Lewis Dirks and the three people who have agreed to purchase the land — listed as Eric VandenHoek, Josh Bialas and Marion Blom — have all signed a commercial/agricultural real estate purchase agreement to close on or before March 31. The land, divided into three parcels, consists of the Blom feedlot, the home place south of the feedlot and the location of B&B Washout, the Bloms' company which is also named as a defendant in the foreclosure.
Investors believed they had contracts for as much as 33,000 head of cattle to be marketed by the Bloms, Dirks' investigation found that because Blom had sold the same cattle several times over, only about 6,000 head of cattle actually existed. Those cattle have now been sold, with the approximately $8 million generated from those sales placed in the receivership account.
A new judge also has been appointed in the case on Feb. 24. First Circuit Presiding Judge Cheryle Gering appointed First Circuit Judge Tami Bern to take over the case from Judge Bruce Anderson. Anderson recused himself last month, citing his already heavy caseload and the significant amount of time the complicated Blom case would require.
As of Monday, March 9, no date had been set to discuss First Dakota's motion on the land sale and no documents had been filed in response.
The feedlot's financial meltdown has affected investors in South Dakota, North Dakota and Montana.
Robert "Bob" Blom last year pleaded guilty to Class C felony issuing check or draft without sufficient funds or credit in a related North Dakota case.