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Attorney General Jason R. Ravnsborg

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Sturgis Meat Indictments

Sturgis Meat Indictments

(Pierre) – A Meade County Grand Jury, Wednesday, indicted three South Dakota men for activities surrounding the sale of unregistered Sturgis Meat Service securities.  Ronald J. Gapp, Piedmont; Philip Kevin Cyre, Watertown; and Robert A. Jewett, Spearfish, were charged by complaint in September for selling over $1 million worth of unregistered stock. Gapp is facing charges for selling unregistered securities and the fraudulent sale of securities.  Cyre and Jewett are charged with selling unregistered securities, the fraudulent sale of securities and grand theft.  An arraignment date has not yet been set.

“The sale of unregistered securities is a serious corporate crime, and we’re going to prosecute it to the best of our abilities,” said Attorney General Larry Long

In 2001, Gapp, Cyre, and Jewett formed 3 Pals, Inc. to manage and effectively take over Sturgis Meat Services. At that time they started selling “service contracts” to cattle producers. According to South Dakota law, the “service contracts” sold by 3 Pals, Inc. are considered non-exempt securities, which are required to be registered with the South Dakota Division of Securities. The partnership of Gapp, Cyre, and Jewett failed to register the securities and failed to uphold their portion of the service agreement which resulted in the loss of approximately $1.5 million to area ranchers.  In addition, Jewett and Cyre are accused of defrauding one area rancher of $300,000 in their efforts to fund the operation of Sturgis Meat Services.

Sales records show that 3 Pals, Inc. sold these service contracts to approximately 66 individuals or entities. 

Each of these offenses is a class four felony punishable by up to 10 years in prison and a $10,000 fine.