IX.
INCOME & PROCEEDS | USE, INVESTMENT & ASSET DISPOSITION
SOURCE-TO-USE FINANCIAL RECORD
THE RECORD IDENTIFIES THE SOURCE AND OWNER OF EACH MATERIAL ASSET OR PAYMENT, THE PERSON OR ACCOUNT THAT RECEIVED IT, ITS SUBSEQUENT MOVEMENT OR USE, THE PROPERTY OR ENTERPRISE POSITION BENEFITED, THE RESULTING CLAIMANT-SPECIFIC LOSS, AND THE SUPPORTING INSTRUMENT.
Each material flow is stated in the same order:
CLAIMANT-OWNED ASSET OR INCOME
→ INITIAL RECIPIENT OR ACCOUNT
→ TRANSFER OR DISBURSEMENT
→ LATER USE OR INVESTMENT
→ BENEFITED PROPERTY OR ENTERPRISE POSITION
→ CLAIMANT-SPECIFIC ECONOMIC INJURY
→ SOURCE INSTRUMENT
The page separately identifies:
- income or proceeds asserted under 18 U.S.C. § 1962(a);
- revenue, collateral, accounts, and property used as control mechanisms under § 1962(b);
- direct business-or-property injury and causation;
- acquisition and refinancing of the transferred position;
- and tax assessment and institutional enforcement arising from the transaction record.
GOVERNING § 1962(a) SHOWING
For each asserted § 1962(a) path, the record identifies:
RICO PERSON
→ ANTECEDENT ALLEGED PREDICATE
→ INCOME OR PROCEEDS RECEIVED
→ PARTICIPATION AS PRINCIPAL
→ LATER USE OR INVESTMENT
→ ENTERPRISE OR ENTERPRISE INTEREST
→ DISTINCT INJURY CAUSED BY THE USE OR INVESTMENT
The asserted investment injury rests on the later use of claimant-owned income, property value, herd proceeds, closing proceeds, or exchange proceeds to:
- operate the dairy through non-claimant accounts;
- service the secured operating line;
- reduce indebtedness on the assets subsequently transferred;
- capitalize operator-controlled accounts;
- acquire replacement property outside the claimants;
- finance the Martins-affiliated acquisition;
- and refinance and maintain the acquired position.
Parker & Parsley Petroleum Co. v. Dresser Industries, 972 F.2d 580, 584 (5th Cir. 1992); Crowe v. Henry, 43 F.3d 198, 205 (5th Cir. 1995); St. Paul Mercury Insurance Co. v. Williamson, 224 F.3d 425, 441 (5th Cir. 2000).
FINANCIAL OUTCOMES
Transferred from the Two Sisters Dairy LLC account to account No. XXXXX083 during the documented December 2013–January 2014 statement period.
Total documented proceeds from the February 2023 herd-disposition record.
Withdrawn from account No. 952877 after the July 2024 closing.
Seized and retained through the federal collection sequence.
SOURCE-TO-USE RECORD
| FLOW | CLAIMANT-OWNED SOURCE | INITIAL RECIPIENT OR DESTINATION | LATER MOVEMENT OR USE | DIRECT CLAIMANT RESULT | SUPPORT |
|---|---|---|---|---|---|
| F-01 | MILK-CHECK RETENTION | Two Sisters Dairy LLC’s contractual $20,000 monthly retention designated to keep the premises mortgage current | Dairy operating and lender-controlled account structure | Applied to dairy operating obligations and secured-credit maintenance through accounts not titled to Two Sisters | Loss of company working capital and mortgage-servicing funds; approximately $2,400,000 calculated at the stated rate over the identified period | REVISED COW LEASE ¶¶ 2(c), 7 | COMPANY LEDGER | FINANCIAL STATEMENTS |
| F-02 | MILK-SALE REVENUE | Milk revenue booked to Two Sisters Dairy LLC | Two Sisters account No. 0827673; later account No. 952877 and the Borden-assignment account | Paid dairy operating obligations and creditors through operator-controlled accounts | Company revenue funded the operation while the company’s documented year-end cash remained nominal or overdrawn | TWO SISTERS STATEMENT 1-14 | EX-0059 | RECORD 0234 | RECORD 0379 | RECORD 0645 |
| F-03 | NOTE RECEIVABLE | Two Sisters Dairy LLC’s $3,970,000 Proton Power/Bay Minette note receivable | Bank of the West collateral position | Note and payment rights assigned and endorsed to the lender as security for the operating facility | Company receivable and payment rights supported credit extended through the operator-side facility; injury is measured from diverted payments, impairment, enforcement expense, or lost value; the note face states the instrument amount | EX-0249 | RECORD 0253 | EX-0627 | EX-0628 | RECORD 0630 |
| F-04 | HERD PROCEEDS | Two Sisters Dairy LLC herd | Operating line; account No. 048247589; account No. 952877 | $3,710,169.69 applied to the operating line; $828,123.38 and $633,701.36 deposited to accounts titled to Klaas Talsma | Herd value retired secured operating debt and capitalized operator-titled accounts while Two Sisters received no corresponding distribution | RECORD 0379 | EX-0396 | RECORD 0406 | RECORD 0417 |
| F-05 | HEIFER RANCH CONSIDERATION | Anastasia Anne Thiele’s separately titled 502.035-acre Heifer Ranch | Bank of the West; AgTexas; settlement charges | $2,778,895.49 paid to Bank of the West and $703,840.60 paid to AgTexas; $2,436,233.94 of the Bank of the West payoff was subsequently applied to the cattle-secured operating line | Anastasia’s separately titled property serviced operating interest, fees, and debt while she received $0.00 cash and retained the corresponding tax consequences | HUD 22-36290 | RECORD 0355 | RECORD 0393 | RECORD 0400 | RECORD 0406 |
| F-06 | DAIRY LEASE RENT | Possession and use of the claimants’ dairy operation | Klaas Talsma | $70,000 per month under the lease effective April 7, 2023 | The Martins-affiliated transferee received possession before closing; the rent funded neither claimant | RECORD 0420 | RECORD 0436 | RECORD 0644 |
| F-07 | EXHIBIT-B CREDITOR POOL | July 2024 dairy-closing consideration labeled “Two Sisters Dairy — Unsecured Creditors / Funds for Future Expenses” | Account No. 952877 titled “Klaas Talsma d/b/a Talsma Dairy” | $510,000 applied to Klaas Talsma’s personal judgment; $356,000 transferred to account No. 3140; $325,711.15 later returned through four transfers | Company-labeled closing funds entered an operator-titled account and were used through identified operator-side transactions | RECORD 0437 | RECORD 0505 | RECORD 0507 | RECORD 0521 |
| F-08 | ASSET PRESERVATION EXCHANGE FUNDS | Dairy-closing consideration | Asset Preservation, Inc., intermediary for Klaas Talsma | $3,814,738.56 from File 24-39066 and $883,711.48 from File 24-39004 applied through Talsma’s replacement-property transactions | Sale consideration originating in the closing structure was invested in replacement property outside both claimants | RECORD 0507 | RECORD 0516 |
| F-09 | CLAIMANT IPX EXCHANGE FUNDS | July 2024 closing allocation | IPX 1031 | $2,052,000 allocated to Anastasia Anne Thiele and $1,762,738.56 allocated to Two Sisters Dairy LLC; replacement properties closed November 26, 2024 | The exchange record reports replacement value of $2,036,568 against adjusted basis of $9,465,760 and a reported realized loss of $7,429,192 | RECORD 0505 | RECORD 0507 | EX-0529 | EX-0530 |
| F-10 | EQUIPMENT AND FEED | Two Sisters-titled equipment, rolling stock, feed, and inventory | Auction purchasers, TMC-related purchasers, Klaas Talsma, and identified receiving operations | Equipment auctions, direct purchases, feed sales, relocation, and later asset coding | Company-titled equipment and feed value moved into operator or acquiring-entity channels while the 2024 sale excluded identified rolling stock and feed | RECORD 0318 | RECORD 0322 | RECORD 0354 | RECORD 0421 | RECORD 0424 |
| F-11 | ACQUISITION AND REFINANCING | Transferred dairy land, operating assets, possession rights, equipment, and financing capacity | Martins-affiliated entities; BMO; later AgTexas | BMO recorded and filed $32,000,000 — two $15,000,000 notes and a $2,000,000 deed; AgTexas refinanced at $33,000,000, increased to $40,000,000 on April 14, 2026; the ten-note facility totaled $118,696,740.50 | The transferred position became the collateral and operating base for financing available to the acquiring entities and unavailable to the claimants | RECORD 0519 | RECORD 0523 | RECORD 0642 | EX-0646 |
| F-12 | TAX AND COLLECTION | Anastasia Anne Thiele’s cash, homestead, credit, and investment capital | Federal assessment and collection system | Assessment, continuing interest, federal lien, levy, retention of $293,805.14, and passport certification | Direct loss of cash; encumbrance of property; impaired title, credit, refinancing, investment capacity, and business recovery | RECORD 0350 | RECORD 0351 | FORM 668(Y)(c) | FORM 668-A | CP508C | ACCOUNT RECORD |
CLAIMANT-SPECIFIC ASSET DISPOSITION
TWO SISTERS DAIRY LLC
| ASSET OR INTEREST | DISPOSITION | RESULTING POSITION | SUPPORT |
|---|---|---|---|
| MILK REVENUE AND WORKING CAPITAL | Routed through operator and lender account channels | Company operated with minimal or negative cash despite multimillion-dollar booked revenue | LEASE | COMPANY STATEMENTS | EX-0059 | RECORD 0234 |
| DAIRY HERD | Dispersed beginning February 18, 2023 | Proceeds applied to operating debt and operator-titled accounts | RECORD 0379 | EX-0396 | RECORD 0406 | RECORD 0417 |
| EQUIPMENT AND ROLLING STOCK | Auctioned, sold, relocated, excluded from the closing, or later coded through operator-side schedules | Equipment value entered purchaser and operator channels outside the company | RECORD 0318 | RECORD 0322 | RECORD 0354 | RECORD 0421 |
| FEED AND INVENTORY | Sold through identified 2023 transactions and excluded from the 2024 lump-sum personal-property sale | Payments made through the operator-side structure | RECORD 0421 | RECORD 0424 |
| $3,970,000 NOTE RECEIVABLE | Assigned and endorsed to Bank of the West’s collateral position | Payment and enforcement rights used to support the operating facility | EX-0249 | RECORD 0253 | EX-0627 | EX-0628 | RECORD 0630 |
| CLOSING AND CREDITOR-POOL PROCEEDS | Company-labeled pool wired to account No. 952877 and later withdrawn | Funds used through identified operator-side payments and transfers | RECORD 0505 | RECORD 0507 | RECORD 0521 |
| COMPANY EXCHANGE RIGHTS | $1,762,738.56 allocated through IPX 1031 | Included in the claimant exchange and replacement-property record | RECORD 0505 | RECORD 0507 | EX-0530 |
ANASTASIA ANNE THIELE
| ASSET OR INTEREST | DISPOSITION | RESULTING POSITION | SUPPORT |
|---|---|---|---|
| HEIFER RANCH | 502.035 ACRES | Sold February 22, 2023 for $3,500,000; lender payoffs consumed the closing consideration | Anastasia received $0.00 cash; O&B held title before onward transfer to 3T Martins Farm Hico LLC | HUD 22-36290 | EX-0399 | RECORD 0400 | RECORD 0624 | RECORD 0625 |
| SEPARATELY TITLED DAIRY REAL PROPERTY AND IMPROVEMENTS | Possession transferred April 7, 2023; property conveyed July 26, 2024 | Martins-affiliated entity acquired the property; BMO and later AgTexas financed the acquired position | RECORD 0420 | RECORD 0507 | RECORD 0519 | EX-0646 |
| PERSONAL CLOSING AND EXCHANGE RIGHTS | Sale price and 1099-S allocation divided through the CMA and closing instruments | Anastasia received the identified IPX allocation but no cash distribution on Line 603; tax and exchange consequences followed | RECORD 0506 | RECORD 0507 | EX-0529 |
| CASH AND INVESTMENT CAPITAL | Federal levy and posting | $293,805.14 seized and retained | FORM 668-A | ACCOUNT RECORD |
| FLORIDA HOMESTEAD | Federal tax lien | Title, sale, credit, and refinancing capacity impaired | FORM 668(Y)(c) |
CLOSING RECONCILIATIONS
HEIFER RANCH | KING TITLE FILE 22-36290 | FEBRUARY 22, 2023
| DISBURSEMENT | AMOUNT |
|---|---|
| CONTRACT SALES PRICE | $3,500,000.00 |
| BANK OF THE WEST PAYOFF | $2,778,895.49 |
| AGTEXAS PAYOFF | $703,840.60 |
| SETTLEMENT CHARGES | $16,948.00 |
| AD VALOREM TAXES | $315.91 |
| CASH TO ANASTASIA ANNE THIELE | $0.00 |
The later $2,436,233.94 cattle-line application is stated as a component of the Bank of the West payoff, entering the closing total once.
HERD DISPOSITION | FEBRUARY–APRIL 2023
| PROCEEDS OR APPLICATION | AMOUNT |
|---|---|
| RING GROSS | $4,868,315.00 |
| TOTAL DOCUMENTED PROCEEDS AFTER FEES AND DIRECT PACKER DEPOSITS | $5,171,994.43 |
| TO OPERATING LINE | $3,710,169.69 |
| TO ACCOUNT NO. 048247589 | $828,123.38 |
| TO ACCOUNT NO. 952877 | $633,701.36 |
| TOTAL TO TALSMA-TITLED ACCOUNTS | $1,461,824.74 |
DAIRY CLOSING | KING TITLE FILE 24-39066 | JULY 25–26, 2024
| DISBURSEMENT OR ALLOCATION | RECIPIENT | AMOUNT |
|---|---|---|
| GROSS SALES PRICE | — | $10,250,000.00 |
| EXHIBIT B | ACCOUNT NO. 952877 | $963,830.47 |
| LINE 517 | ASSET PRESERVATION, INC. | $3,814,671.31 |
| EXHIBIT D | IPX 1031 | ANASTASIA ANNE THIELE | $2,052,000.00 |
| EXHIBIT E | IPX 1031 | TWO SISTERS DAIRY LLC | $1,762,738.56 |
| PAYOFF | O&B FARMS, INC. | $572,399.45 |
| PAYOFF | AGTEXAS | $740,007.30 |
| PAYOFF | ELLIOTT ELECTRIC SUPPLY | $284,949.50 |
1099-S ALLOCATION OF THE $8,900,000 REAL-PROPERTY PRICE
| REPORTED SELLER | AMOUNT |
|---|---|
| KLAAS TALSMA | $4,450,000.00 |
| ANASTASIA ANNE THIELE | $1,000,000.00 |
| TWO SISTERS DAIRY LLC | $3,450,000.00 |
JULY 26, 2024 CLOSING RECORD
THE TABLES ABOVE STATE WHERE THE CLOSING CONSIDERATION WENT. THIS SECTION STATES WHAT THE CLOSING INSTRUMENTS THEMSELVES SAY, QUOTED FROM THE KING TITLE CLOSING FILE (EX-0060) WITH PAGE CITATIONS.
EX-0060 p.31 — Special Warranty Deed with Vendor’s Lien (934.143 acres, Erath County): “…executed by Grantee and payable to the order of BMO Bank, N.A., in the principal amount of FIFTEEN MILLION AND NO/100 DOLLARS ($15,000,000.00). The note is secured by a first and superior vendor’s lien and superior title retained in this deed in favor of BMO Bank, N.A. (to the extent of the purchase price paid for the Property) and by a first lien deed of trust dated July 26, 2024, from Grantee to Amarillo Corporate Services, LLC, Trustee.”
EX-0060 p.45 — Special Bill of Sale with Vendor’s Lien (same date and parties; conveying “[a]ll milking equipment, irrigation equipment, and livestock handling equipment owned by Seller … located on the Real Property”): “…payable to the order of BMO Bank, N.A., in the principal amount of FIFTEEN MILLION AND NO/100 DOLLARS ($15,000,000.00). The note is secured by a first and superior vendor’s lien and superior title retained in this bill of sale in favor of BMO Bank, N.A. (to the extent of the purchase price paid for the Personal Property) and by a first lien security interest dated July 26, 2024, for the benefit of BMO Bank, N.A.”
In plain terms: the buyer executed two separate $15,000,000.00 purchase-money notes to the same lender on the same day — one anchored to the land by the deed, one anchored to the dairy equipment by the bill of sale — $30,000,000.00 in total, against a sale recited at $10,250,000.00.
PERFECTION — WHY ONLY ONE NOTE APPEARS IN THE COUNTY INDEX
| NOTE | COLLATERAL | PERFECTION |
|---|---|---|
| $15,000,000.00 | REAL PROPERTY (934.143 ACRES) | DEED OF TRUST, ERATH COUNTY NO. 2024-04200, RECORDED JULY 29, 2024 |
| $15,000,000.00 | MILKING, IRRIGATION, AND LIVESTOCK-HANDLING EQUIPMENT | UCC-1 FINANCING STATEMENT NO. 24-0044256249, FILED JULY 29, 2024 |
| $2,000,000.00 | REAL PROPERTY | DEED OF TRUST, ERATH COUNTY NO. 2024-05562, RECORDED OCTOBER 11, 2024 |
In plain terms: a lien on personal property is perfected by UCC filing and never enters a county real-property index. The recorded BMO position is $32,000,000.00 across three loans.
LIEN SCOPE — THE INSTRUMENTS’ OWN LIMIT
Each vendor’s lien is retained “to the extent of the purchase price paid” for its property. Set against the settlement statement’s allocations:
| ASSET | NOTE | PRICE ALLOCATED | NOTE PRINCIPAL BEYOND THE LIEN’S STATED REACH |
|---|---|---|---|
| REAL PROPERTY, 934.143 ACRES | $15,000,000.00 | $8,900,000.00 | $6,100,000.00 |
| MILKING, IRRIGATION, AND LIVESTOCK-HANDLING EQUIPMENT | $15,000,000.00 | $1,350,000.00 | $13,650,000.00 |
| TOTAL | $30,000,000.00 | $10,250,000.00 | $19,750,000.00 |
Each instrument carries a payment recital (deed, EX-0060 p.36; bill of sale, p.47): “BMO Bank, N.A., at Buyer’s request, has paid in cash to Seller that portion of the purchase price … that is evidenced by the note.”
The settlement statement in the same file (EX-0064): line 202, the field that exists to state the principal amount of the buyer’s new loans — blank. Line 517 — $3,814,671.31 to “Klaas net proceeds to Asset Preservation, Inc.” Line 603 — cash to seller, $0.00.
The recitals name BMO Bank, N.A. as the payer. HUD-1 line 204 states: “Funds from 3T Martins Farm LLC … on behalf of 3T Martins Farm Hico, LLC, and/or lender funds from GF 24-39118 — $10,286,476.79.” The payer named on line 204 (3T Martins Farm LLC, the Idaho contract entity) is not the grantee that took the deed (3T Martins Farm Hico, LLC, a Texas entity).
In plain terms: the closing file gives three accounts of who paid — the bank (per the recitals), the Idaho buyer entity (per line 204), or “and/or lender funds” (the statement declining to choose) — and the amount stated is $10,286,476.79, not the $30,000,000.00 the notes evidence.
Line 517 routes $3,814,671.31 to Klaas Talsma’s qualified intermediary. The file’s p.3 exhibit distributes $2,052,000.00 and $1,762,805.81 — $3,814,805.81 combined — to the Thiele and company qualified intermediaries. The two halves of the same closing sit $134.50 apart.
Klaas Talsma’s acknowledgments were taken in Erath County, Texas (EX-0060 p.37). Anastasia Thiele’s acknowledgments — individually and as Manager of Two Sisters Dairy, LLC — were taken in Palm Beach County, Florida: deed p.38, bill of sale p.48, manufactured-home bill of sale p.58. The place of settlement was Stephenville, Texas (p.1). The seller instruments traveled for execution and return by UPS 2nd Day Air, tracking 1Z FR9 293 02 9902 1305.
The deed and both bills of sale carry file number 24M50.015 and drafter initials “mw” in their footers. The July 2024 nonrepresentation letter of Coan & Elliott, P.C. (same file number) states: “Our client in this transaction is the Seller, Klaas Talsma, Anastasia Thiele, and Two Sisters Dairy, LLC” and “This firm represents only the Seller.” The letter is addressed to 3T Martins Farm Hico, LLC.
EX-0060 (KING TITLE CLOSING FILE, PAGE-CITED ABOVE) | EX-0062 (DISBURSEMENT AGREEMENT, EXHIBITS B–E) | EX-0063 (FORM 1099-S) | EX-0064 (HUD-1 SETTLEMENT STATEMENT, FILE 24-39066) | EX-0059 (HUD-1 SETTLEMENT STATEMENT, FILE 24-39004)
EXHIBIT-B PROCEEDS PATH
$963,830.47 CLOSING POOL
→ ACCOUNT NO. 952877
→ $510,000 TO THE IDENTIFIED PERSONAL JUDGMENT
→ $356,000 TO ACCOUNT NO. 3140
→ $325,711.15 RETURNED THROUGH FOUR TRANSFERS
This stream is developed independently from the claimant IPX exchange. A causal connection between the Exhibit-B withdrawals and the $7,429,192 exchange-loss measure is stated only where an identified instrument or account trace directly establishes it.
§ 1031 PATHS
The identified amounts were placed with Asset Preservation, Inc. in the Talsma replacement-property channel.
The Asset Preservation and IPX streams remain separately identified by intermediary, claimant, amount, and replacement-property record.
ACQUISITION & REFINANCING OF THE TRANSFERRED POSITION
| DATE | LENDER | BORROWER | INSTRUMENT OR FUNCTION | AMOUNT |
|---|---|---|---|---|
| SEPTEMBER 16, 2021 | AGTEXAS | MARTINS-AFFILIATED ENTITIES | INITIAL BUYER-SIDE LOANS | $15,020,628 |
| APRIL 2022 | AGTEXAS | MARTINS-AFFILIATED BORROWER | ADDITIONAL EXTENSION | $7,092,112.50 |
| MAY 12, 2023 | AGTEXAS | 3 T MARTINS FARM LLC | LOAN 6270070 | $8,500,000 |
| JULY 29, 2024 | BMO BANK, N.A. | 3T MARTINS FARM HICO LLC | NOTE 1 — DEED OF TRUST NO. 2024-04200 (REAL PROPERTY) | $15,000,000 |
| JULY 29, 2024 | BMO BANK, N.A. | 3T MARTINS FARM HICO LLC | NOTE 2 — UCC-1 NO. 24-0044256249 (EQUIPMENT AND FIXTURES) | $15,000,000 |
| OCTOBER 11, 2024 | BMO BANK, N.A. | 3T MARTINS FARM HICO LLC | DEED OF TRUST NO. 2024-05562 | $2,000,000 |
| NOVEMBER 26, 2025 | AGTEXAS | 3T MARTINS FARM HICO LLC | LOAN 6811410 REFINANCE — FIRST OF $40,000,000 ON THE DAIRY ENTITY BY APRIL 14, 2026 | $33,000,000 |
| JANUARY 2026 | BMO BANK, N.A. | — | UCC TERMINATION AND DEED RELEASES | — |
| APRIL 14, 2026 | AGTEXAS | BORROWERS OF RECORD | ADDITIONAL NOTES | $55,000,000 |
| THROUGH MAY 5, 2026 | AGTEXAS | FIVE CROSS-GUARANTEED ENTITIES | TEN-NOTE RECORDED FACILITY | $118,696,740.50 |
The financing record shows that the transferred land, operating assets, equipment, possession rights, and business position became the collateral and operating base for increasingly larger credit facilities extended to the acquiring entities.
The $118,696,740.50 facility is identified as: evidence of subsequent use and financing of the acquired position; evidence of acquisition or maintenance of control; evidence of enterprise relationships and longevity; and a measure of financing capacity associated with the transferred position.
It is not stated as the claimants’ compensatory-damages amount.
TAX ALLOCATION & INSTITUTIONAL ENFORCEMENT
The tax record is divided by transaction and tax year.
$3,500,000 SALE
→ $0.00 CASH TO ANASTASIA ANNE THIELE
→ $3,080,860 SCHEDULE D GAIN REPORTED
→ TAX LIABILITY WITHOUT CORRESPONDING CLOSING CASH
$8,900,000 REAL-PROPERTY ALLOCATION
→ $4,450,000 REPORTED TO KLAAS TALSMA
→ $1,000,000 REPORTED TO ANASTASIA ANNE THIELE
→ $3,450,000 REPORTED TO TWO SISTERS DAIRY LLC
IDENTIFIED TAX ALLOCATION AND RETURN RECORDS
→ $1,054,385 ASSESSMENT
→ CONTINUING INTEREST AND PENALTIES
→ FEDERAL TAX LIEN
→ FORM 668-A LEVY
→ $293,805.14 POSTED AND RETAINED
→ CP508C PASSPORT CERTIFICATION
→ CONTINUING IMPAIRMENT OF CASH, TITLE, CREDIT, INVESTMENT CAPACITY, AND BUSINESS RECOVERY
The 2023 and 2024 tax paths remain separately stated. The assessment is attributed to either or both transactions only as established by the return, examination, transcript, and assessment records.
SECTION III | ACCRUAL AND SEPARATE ENFORCEMENT INJURIES
SECTION VII | TAX AND ENFORCEMENT CHRONOLOGY
SECTION VIII | IRS AND INSTITUTIONAL ENFORCEMENT
SECTION VIII | CLAIMANT-SPECIFIC INJURY REGISTER
DISTINCT USE-OR-INVESTMENT INJURY
| SOURCE | LATER USE OR INVESTMENT | DISTINCT INJURY FROM THAT USE OR INVESTMENT | CLAIMANT | MEASURE |
|---|---|---|---|---|
| HEIFER RANCH CONSIDERATION | $2,436,233.94 applied to the cattle-secured operating line, including identified interest and default fees | Anastasia’s separately titled property value reduced operating debt on assets and a business position subsequently transferred and refinanced | ANASTASIA ANNE THIELE | $2,436,233.94 |
| HERD PROCEEDS | $3,710,169.69 applied to the operating line; $1,461,824.74 deposited to Talsma-titled accounts | Company herd value retired the secured line and capitalized accounts outside the company | TWO SISTERS DAIRY LLC | $5,171,994.43 TOTAL PROCEEDS |
| EXHIBIT-B POOL | $510,000 applied to a personal judgment and $356,000 transferred to account No. 3140 | Company-labeled closing funds financed identified operator-side transactions | TWO SISTERS DAIRY LLC | $866,000 GROSS WITHDRAWALS |
| ASSET PRESERVATION FUNDS | Closing consideration invested through the Talsma replacement-property channel | Claimant-connected sale consideration became replacement property outside both claimants | ANASTASIA ANNE TWO SISTERS DAIRY LLC | THIELE | $3,814,738.56 + $883,711.48 |
| MILK RETENTION AND REVENUE | Operating expenses and secured-credit maintenance through operator-controlled accounts | Two Sisters operated without the working capital and cash reserved by its own lease and generated by its business | TWO SISTERS DAIRY LLC | APPROX. $2,400,000 RETENTION PLUS DOCUMENTED REVENUE FLOWS |
| NOTE-RECEIVABLE PAYMENTS | Applied to the lender’s collateral position supporting the operating facility | Company receivable income and enforcement rights supported credit outside the company | TWO SISTERS DAIRY LLC | PAYMENTS, IMPAIRMENT, OR LOST VALUE AS DOCUMENTED |
| ACQUIRED DAIRY POSITION | BMO acquisition financing, AgTexas refinancing, and expanded cross-guaranteed facility | The transferred position’s operating and financing capacity accrued to the acquiring entities and remained unavailable to the claimants | BOTH CLAIMANTS | FINANCING CAPACITY SHOWN SEPARATELY FROM DAMAGES |
| TAX AND COLLECTION | Assessment, interest, lien, levy, and retained funds | Direct loss of capital and continuing impairment of property, title, credit, investment capacity, and business recovery | ANASTASIA ANNE THIELE | $293,805.14 PLUS DOCUMENTED INTEREST, LIEN, CREDIT, AND TRANSACTION LOSSES |
ACCOUNT & INSTRUMENT INDEX
The detailed account register follows the substantive money paths. Accounts whose titles are not shown on the cited instrument face carry the neutral notation: TITLE NOT SHOWN ON THE CITED INSTRUMENT FACE.
| ACCOUNT OR ENTITY ID | NAME | INSTITUTION OR TYPE | OWNER OR CONTROLLER | RELEVANT PERIOD | ROLE IN FLOW | SUPPORT |
|---|---|---|---|---|---|---|
| FE-001 | Account No. 0827673 — "TWO SISTERS DAIRY, LLC" | Texas Bank checking | Two Sisters Dairy, LLC | 2013–2014 (documented cycle) | Received National Dairy Holdings milk deposits of $168,792.67 (12/26/2013), $298,479.83 (1/21/2014), and $170,477.96 (1/27/2014); five internet transfers to account No. XXXXX083 in the same statement period totaled $700,000; low daily balance $6,883.25 | Two Sisters Statement 1-14 (12/23/2013–1/27/2014) |
| FE-002 | Account No. XXXXX083 | Texas Bank checking | Title not stated on the instruments presently cited | 2013–2014 | Received five internet transfers ($200,000 · $150,000 · $100,000 · $200,000 · $50,000) from account No. 0827673 | Two Sisters Statement 1-14 |
| FE-003 | Account No. 952877 — "KLAAS TALSMA D/B/A TALSMA DAIRY" | Texas Bank checking | Talsma, K (sole title) | 2022–2024 | Received milk revenue; the $633,701.36 cull-cow deposits (1/2/2023–4/20/2023); the $963,830.47 wire of 7/26/2024 labeled on the settlement record "Two Sisters Dairy — unsecured creditors / Funds for future expenses"; source of the $866,000 withdrawn 7/30–8/8/2024 and of $15,000/month transfers, 9/2023–2/2024 | RECORD 0379, RECORD 0425, RECORD 0437, RECORD 0505, RECORD 0507, RECORD 0521, RECORD 0645 |
| FE-004 | Account No. 048247589 — "Talsma, K dba Frisia Farms" | Bank of the West checking | Talsma, K | 2021–2023 | Named in the 3/29/2021 Borden proceeds assignment; received the $828,123.38 wire of 4/12/2023 | RECORD 0234, RECORD 0417, RECORD 0645 |
| FE-005 | Talsma, K's Wells Fargo account (Revised Cow Lease ¶ 7) | Wells Fargo deposit account | Talsma, K; Wells Fargo named third-party beneficiary and cow-lien holder | 2011–2016 era | Lease ¶ 7 directed the milk-check share into this account for so long as Wells Fargo held the cow lien | Revised Cow Lease Agreement, Bankruptcy Doc 422 (Case No. 10-43790, N.D. Tex.) |
| FE-006 | Loan No. 1060892136-208 and the cattle-secured operating line | Loan accounts — Bank of the West (conduct before 2/1/2023); BMO Bank, N.A. (successor conduct after 2/1/2023) | Bank of the West; BMO Bank, N.A. from 2/1/2023 | 2018–2023 | Received $2,778,895.49 (2/22/2023, per the wire instructions of 2/17/2023), $3,710,169.69 (2/23/2023), and $2,436,233.94 (2/23/2023); line balance $0.00 on 2/23/2023 after interest of $272,220.55 and default fees of $68,441 | RECORD 0393, RECORD 0406 |
| FE-007 | Asset Preservation, Inc. | Qualified intermediary (§ 1031) | Intermediary for Talsma, K | 2024 | Received $3,814,671.31 (HUD 24-39066, Line 517) and $883,711.48 (HUD 24-39004, Line 517) | RECORD 0507, RECORD 0516 |
| FE-008 | IPX 1031 (Investment Property Exchange Services, Inc.), Exchange EX-11-42001-TB | Qualified intermediary (§ 1031) | Intermediary for Thiele, A and for Two Sisters Dairy, LLC | 2024–2025 | Received $2,052,000 (Exhibit D, Thiele, A) and $1,762,738.56 (Exhibit E, Two Sisters); replacement properties closed 11/26/2024 | RECORD 0505, RECORD 0507, EX-0529, EX-0530 |
| FE-009 | Accounts CHK 8995 / CHK 8991 | Checking accounts | Titles not stated on the instruments presently cited | 2023–2024 | Received $15,000/month from account No. 952877 — $108,000 across the documented period | RECORD 0425, RECORD 0430, RECORD 0486–0491 |
| FE-010 | Account No. 3140 | Checking account | Full title not stated on the instruments presently cited | 2024 | Received the $356,000 transfer of 8/8/2024 | RECORD 0437, RECORD 0521 |
| FE-011 | AgTexas Farm Credit Services loan accounts — note 961038; loans 5858550, 5858560, 5858570, 6270070, 6811410 | Farm Credit System loan accounts | AgTexas Farm Credit Services | 2013–2026 | Received $703,840.60 (2/22/2023) and $740,007.30 (7/26/2024) from the two closings; extended $15,020,628 (9/16/2021), $7,092,112.50 (4/2022), $8,500,000 (5/12/2023), $33,000,000 (11/26/2025), and $55,000,000 (4/14/2026) — the 4/14/2026 notes bringing the dairy-entity position to $40,000,000 | RECORD 0400, RECORD 0507, RECORD 0642, RECORD 0643, RECORD 0644, EX-0646 |
| FE-012 | King Title Company escrow files 22-36290, 24-39066, 24-39004 | Title and escrow files | King Title Company / Wilson, L | 2023–2024 | Administered every disbursement line of the 2/22/2023 and 7/26/2024 settlements | RECORD 0400, RECORD 0506, RECORD 0507, RECORD 0516 |