Northwest Missouri Farm Realty

Mortgage Fraud Blog - North Missouri Farmer Indicted For Bank Fraud

, 36, Trimble, Missouri, who had a large farming operation in Buchanan and Clinton counties was indicted by a federal grand for bank fraud, making false statements to obtain loans, selling some of the crops that were supposed to secure loans, and obstruction of justice, which is related to the bankruptcy proceedings in which his farm property was sold. The eight-count superseding indictment replaces an August 19, 2008, federal indictment that charged , filed a Chapter 11 bankruptcy case on Sept. 25, 2007. The primary asset of the bankruptcy estate was a large farming operation. During the course of the bankruptcy, the indictment alleges, they fired their bankruptcy counsel, repeatedly violated bankruptcy court orders, and refused to cooperate with their creditors. Creditors filed a joint emergency motion to appoint a trustee, which the bankruptcy court granted on February 14, 2008.

The did not submit a viable plan of reorganization, the indictment says, and interest and attorneys’ fees on their massive debts were increasing at an alarming rate. The trustee sought permission to sell the farm equipment and real estate, and the court approved auction procedures to sell those assets. The farm equipment was sold at auction in April 2008 and the real estate holdings and residence were scheduled to be sold in August 2008.

Prior to the real estate auction, the indictment says, allegedly received a total of $168,219 from those sales.

Charges contained in the indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the U.S. Department of Agriculture and the Federal Bureau of Investigation.

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