VI.

CONDUCT OF THE ASSOCIATION-IN-FACT ENTERPRISE

§ 1962(c) CONDUCT OF THE ASSOCIATION-IN-FACT ENTERPRISE

§ 1962(c) RECORD
THE § 1962(c) RECORD IDENTIFIES, PERSON BY PERSON, WHO DIRECTED AN ENTERPRISE AFFAIR, WHAT DECISION OR INSTRUCTION WAS ISSUED, HOW IT WAS EXECUTED, WHICH INSTRUMENT OR COMMUNICATION CARRIED IT, AND WHAT BUSINESS-OR-PROPERTY RESULT FOLLOWED.

Section 1962(c) is not asserted from institutional presence, professional status, transaction participation, document processing, fund receipt, or knowledge alone.

For each alleged § 1962(c) person, the record identifies:

RICO PERSON → DECISION AUTHORITY → DIRECTION OF AN ENTERPRISE AFFAIR → EXECUTING PERSON OR CHANNEL → COMMUNICATION OR INSTRUMENT → DATE → CHARGED PREDICATE COURSE → DIRECT RESULT → CLAIMANT-SPECIFIC INJURY

GOVERNING STANDARD

Reves v. Ernst & Young, 507 U.S. 170, 179, 183–85 (1993); Walker v. Beaumont Independent School District, 938 F.3d 724, 738–39 (5th Cir. 2019).

PERSON-SPECIFIC OPERATION-OR-MANAGEMENT RECORD

BANK OF THE WEST

BANK OF THE WEST
ENTERPRISE FUNCTION

Operating-credit, collateral, valuation, default-enforcement, disposition, and payoff authority.

DATE OR PERIOD DECISION OR DIRECTION EXECUTION ENTERPRISE AFFAIR RESULT SUPPORT
AUGUST–SEPTEMBER 2019Stated that the proposed collateral transaction required AgTexas’s execution of the Consent to EasementConsent requested and denied; Bank of the West recorded Deed of Trust No. 2019-05501 twenty-eight days laterCollateral access and lien positionBank of the West recorded its asserted position without the requested AgTexas consentEV-0165 | EV-0648 | DEED OF TRUST NO. 2019-05501
MAY–JULY 2022Shut off the operating sweep, froze advances, classified the facility as an exit credit, and stated a $6,146,401.90 balancePosition-report and lender-communication channels implemented the decisionsOperating credit and working capitalOperating liquidity ended while the balance increased by $1,671,504.69EV-0294 | EV-0300
AUGUST–NOVEMBER 2022Issued default and imposed the forbearance, paydown, and disposition calendarDefault notice, Modification and Forbearance Agreement, and transaction deadlinesDefault enforcement and compelled disposition$100,000 fee, $2,500,000 compelled paydown, expanded collateral enforcement, and sale deadlinesEV-0300 | EV-0311
SEPTEMBER 2022Commissioned the appraisalWT Appraisal valued the 1,436.178-acre operating property after the assignment had been described as the “Anastasia 100 AC improved pasture”Valuation and transaction preparationThe complete operating-property valuation entered the lender file before Tony Martins was identified to Anastasia Anne ThieleEV-0307 | EV-0317 | EV-0638
FEBRUARY 2023Directed the payoff required for the Heifer Ranch closingKing Title distributed $2,778,895.49 to Bank of the West and $703,840.60 to AgTexasPayoff, closing, and proceeds applicationAnastasia Anne Thiele’s land value was applied to operating debt; the closing reported $0.00 cash to herEV-0391 | EV-0393 | HUD 22-36290
ASSERTED § 1962(c) POSITION

Bank of the West allegedly directed the enterprise affairs involving operating credit, collateral access, default enforcement, appraisal scope, disposition timing, and application of claimant-owned property proceeds.

DIRECT RECORD PATH

KLAAS TALSMA

KLAAS TALSMA
ENTERPRISE FUNCTION

Operator, borrower, internal decision source, disposition participant, and proceeds recipient.

DATE OR PERIOD DECISION OR DIRECTION EXECUTION ENTERPRISE AFFAIR RESULT SUPPORT
FEBRUARY 16, 2020Asserted a written two-of-three governance rule over the single-member companyGovernance directive transmitted through the internal channelCompany governance and authorityNon-member control was asserted over company decisionsEV-0213
APRIL 11, 2022Ordered that Anastasia Anne Thiele be denied access to the company booksIsaac Ghorbani confirmed same-day compliance and withheld accessCompany information and accounting controlThe sole member and manager was excluded from company and lender informationEV-0289
2022–2023Directed Ghorbani and participated in the default, sale, buyer, and transaction coursePosition reports, transaction communications, Good Faith Agreement, lease, options, and asset recordsInformation, disposition, possession, and transferThe Martins-affiliated transferee obtained exclusive transaction rights and possessionEV-0252 | EV-0325 | EV-0382 | EV-0398 | EV-0420
FEBRUARY 2023Executed the herd-liquidation and proceeds structureAuction, account, payoff, and closing channelsHerd disposition and operating-debt payoffHerd proceeds and Anastasia’s land value retired the operating lineEV-0393 | EV-0396 | EV-0410 | EV-0411
JULY 2024Participated in the dairy disposition and closing allocationsClosing, excluded-assets, qualified-intermediary, and creditor-pool instrumentsTransfer and proceeds allocationProperty and value were routed through the operator-side structure while the identified seller received $0.00 cashEV-0505 | EV-0506 | EV-0507 | EV-0521
ASSERTED § 1962(c) POSITION

Klaas Talsma allegedly directed enterprise affairs involving company governance, access to records, operation of the dairy, disposition of the herd and business assets, buyer positioning, and proceeds allocation while holding no membership interest in Two Sisters Dairy LLC.

DIRECT RECORD PATH

ISAAC GHORBANI

ISAAC GHORBANI
ENTERPRISE FUNCTION

Internal controller, lender conduit, information gatekeeper, transaction drafter, and proceeds-direction channel.

DATE OR PERIOD DECISION OR DIRECTION EXECUTION ENTERPRISE AFFAIR RESULT SUPPORT
2019–2022Controlled transmission of company position reports, lender information, and account recordsSupplied selected financial information through the lender channelCompany information, accounts, and lender accessThe internal controller became the principal information channel between the dairy operation and the financial institutionsEV-0172 | EV-0184 | EV-0294
APRIL 11, 2022Received and implemented Talsma’s company-books lockout orderConfirmed compliance and withheld accounting accessInformation and governance controlAnastasia Anne Thiele was excluded from company records during the operating-line increase and default sequenceEV-0289
2022–2023Supplied position data and transmitted appraisal, bank, buyer, and transaction materialsInformation and documents were routed among Bank of the West, AgTexas, the buyer, counsel, and accounting channelsDefault support, valuation, and buyer preparationThe lender and buyer channels operated through information unavailable to the recorded ownerEV-0294 | EV-0307 | EV-0382 | EV-0393 | EV-0647
2023–2024Drafted or prepared transaction, asset, and allocation records and directed identified proceedsAgreements, asset schedules, closing instructions, and funds directionsPossession, transfer, closing, and proceedsNon-owner transaction terms and distributions were entered into the closing and accounting recordEV-0382 | EV-0398 | EV-0506 | EV-0507 | EV-0647
ASSERTED § 1962(c) POSITION

Isaac Ghorbani allegedly directed and controlled enterprise affairs involving company information, lender access, position reporting, buyer communications, transaction terms, asset allocations, and movement of proceeds. His § 1962(c) position does not rest solely on his compliance with Talsma’s instruction. It rests on the additional alleged acts through which he controlled information channels, prepared transaction terms, and directed funds.

DIRECT RECORD PATH

DIRECTED ENTERPRISE-AFFAIR CHAINS

DIRECTING PERSON DIRECTION OR DECISION EXECUTING PERSON OR CHANNEL INSTRUMENT OR COMMUNICATION RESULT SUPPORT
BANK OF THE WESTObtain AgTexas consent before the proposed collateral-access closingGhorbani | Anastasia Anne Thiele | AgTexasConsent to Easement communicationsAgTexas denied the consent; Bank of the West recorded Deed of Trust No. 2019-05501 twenty-eight days laterEV-0648 | 2019-05501
KLAAS TALSMADeny Anastasia Anne Thiele access to the company booksIsaac GhorbaniApril 11, 2022 written instruction and complianceSole member and manager excluded from company and lender informationEV-0289
BANK OF THE WEST | SALISBURY, JShut off sweep, freeze advances, classify exit credit, demand $6,146,401.90, and impose disposition deadlinesGhorbani | Talsma | Anastasia Anne ThielePosition reports, lender communications, default notice, and forbearance instrumentOperating facility moved from active credit to compelled dispositionEV-0294 | EV-0300 | EV-0311
BANK OF THE WEST | BINNER, DCommission the appraisalWT Appraisal, Inc.Appraisal engagement and completed appraisalEntire 1,436.178-acre operation valued before buyer disclosureEV-0307 | EV-0317 | EV-0638
TALSMA AND GHORBANIAdvance the exclusive Martins transactionMartins entities | O&B | counsel | accounting channelGood Faith Agreement, lease, options, consents, asset exclusions, and allocation recordsMartins-affiliated entities obtained possession and purchase rightsEV-0382 | EV-0398 | EV-0420 | EV-0647
BANK OF THE WESTClose the Heifer Ranch and apply the proceeds to lender payoffsKing Title | Wilson, L | GhorbaniHUD 22-36290 and payoff instructions$2,778,895.49 paid to Bank of the West, $703,840.60 paid to AgTexas, and $0.00 cash reported to Anastasia Anne ThieleEV-0391 | EV-0393 | HUD 22-36290

§ 1962(c) CONDUCT EPISODES

EPISODE DATE DIRECTING PERSONS ENTERPRISE AFFAIR DIRECTED CONDUCT RESULT SUPPORT
C-01AUGUST–SEPTEMBER 2019BANK OF THE WESTCollateral accessConsent condition, AgTexas denial, and subsequent recordingBank of the West position recorded across the identified collateralEV-0165 | EV-0648 | 2019-05501
C-02FEBRUARY 2020–APRIL 2022TALSMA | GHORBANIGovernance and informationTwo-of-three directive and company-books lockoutOwner authority displaced and records withheldEV-0213 | EV-0289
C-03MAY–NOVEMBER 2022BANK OF THE WEST | TALSMA | GHORBANIOperating credit and compelled dispositionSweep shutoff, advance freeze, exit-credit designation, default, and forbearance calendar$6,146,401.90 demand tied to debt reduction and disposition deadlinesEV-0294 | EV-0300 | EV-0311
C-04SEPTEMBER–DECEMBER 2022BANK OF THE WEST | GHORBANIValuation and buyer preparationWhole-operation appraisal following the 100-acre description; buyer-related information channelAcquisition entity and valuation prepared before buyer disclosureEV-0304 | EV-0307 | EV-0638
C-05JANUARY 2023–JULY 2024TALSMA | GHORBANI | BANK OF THE WESTHerd and land disposition, possession, closing, and proceedsHerd liquidation, lender payoffs, exclusive buyer transaction, possession, sale, and distributionsLand, herd, operation, assets, and proceeds moved through the identified transfer structureEV-0393 | EV-0398 | EV-0420 | EV-0507

Each episode links to the corresponding charged predicate act in Section IV. A financing, appraisal, closing, lien, release, or refinancing event is not labeled racketeering activity on this page unless Section IV identifies the actor-specific predicate and its statutory elements.

RELATED ACTORS UNDER OTHER STATUTORY PATHS

The following conduct remains part of the RICO record but is not placed in the § 1962(c) operation-or-management roster solely from the facts presently displayed on this page.

ACTOR CONDUCT PRESERVED PRIMARY RECORD PLACEMENT
AGTEXAS FARM CREDIT SERVICESConsent and acceleration authority; buyer-side financing; Martins-specific transfer approval; retained seller note and liens; $33,000,000 refinancing§ 1962(a) USE OR INVESTMENT | § 1962(b) CONTROL | § 1962(d) AGREEMENT | ENTERPRISE RELATIONSHIPS | FINANCIAL FLOWS
BMO BANK, N.A.Buyer acquisition financing; $17,000,000 deeds of trust; equipment-and-fixtures UCC; releases preceding the AgTexas takeout§ 1962(a) USE OR INVESTMENT | § 1962(b) CONTROL | § 1962(d) AGREEMENT | FINANCIAL FLOWS
TONY MARTINS AND 3T ENTITIESPre-financing, possession, purchase rights, acquisition, receipt of transferred assets, and refinancing§ 1962(a) | § 1962(b) | § 1962(d) | TRANSFEREE AND FINANCIAL-FLOW RECORD
O&B FARMS, INC.Interim acquisition, leaseback, possession structure, record title, and onward conveyance§ 1962(b) | § 1962(d) | INTERMEDIARY TRANSFER RECORD
BOUCHER, MORGAN & YOUNGAsset coding, tax workpapers, return preparation, unperformed true-up, and tax allocation§ 1962(d) | PREDICATE RECORD AS CLASSIFIED IN SECTION IV | IRS AND INSTITUTIONAL ENFORCEMENT | CAUSATION
VICK, GCMA drafting and incorporation of the 50/50 disposition allocation§ 1962(d) | PREDICATE RECORD AS CLASSIFIED IN SECTION IV | CLOSING-ALLOCATION CAUSATION
COAN & ELLIOTT, P.C. | WARD, MAgency waiver, creditor consents, sales contracts, releases, and transaction-agent designation§ 1962(d) | PREDICATE RECORD AS CLASSIFIED IN SECTION IV | TRANSFER DOCUMENTATION
KING TITLE COMPANYSettlement statements, lender payoffs, closing calendar, escrow, and proceeds distributions§ 1962(d) | PREDICATE RECORD AS CLASSIFIED IN SECTION IV | CAUSATION | FINANCIAL FLOWS
WILSON, LPerson-specific closing communications, wire execution, shipment, notarization, and disbursement activity§ 1962(d) | PREDICATE RECORD AS CLASSIFIED IN SECTION IV | PERSON-SPECIFIC CLOSING RECORD

This allocation does not minimize or remove their conduct. It assigns each actor to the statutory pathway supported by the identified act rather than treating transaction participation as automatic § 1962(c) operation or management.

§ 1962(d) CROSS-REFERENCE

Agreement is separately developed in SECTION V | ACTOR-SPECIFIC AGREEMENT RECORD.

Section V identifies for each alleged conspirator:

  • the objective allegedly known;
  • the communication or instrument showing that knowledge;
  • the function performed;
  • the substantive § 1962 violation facilitated;
  • and the independently wrongful conduct that caused injury.

The § 1962(d) theory does not require that every conspirator independently satisfy the § 1962(c) operation-or-management standard.

DIRECT SUPPORT

EVIDENCE IDENTIFIERS

EV-0165 | EV-0184 | EV-0213 | EV-0234 | EV-0241 | EV-0289 | EV-0294 | EV-0300 | EV-0304 | EV-0307 | EV-0311 | EV-0382 | EV-0393 | EV-0398 | EV-0420 | EV-0507 | EV-0519 | EV-0630 | EV-0638 | EV-0642 | EV-0646 | EV-0647 | EV-0648

HUD 22-36290 | HUD 24-39066 | DEED OF TRUST NO. 2019-05501 | CMA EXHIBIT A | AGENCY WAIVER | MARTINS-SPECIFIC CONSENT | SALES CONTRACTS | RELEASE INSTRUMENTS

RECORD INDEX