EC Nebraska | scassell - 10/12/2017 16:47
Have there been any fraud charges brought against anyone?
This article seems to say that the CHS lawsuit alleged fraud.
The lawsuit levels a number of allegations against Boersen Farms.
"First, CHS alleges the farm "fraudulently and intentionally misrepresented to CHS Capital the quantity of harvested 20l6 grain available for sale, which quantity and resulting expected sale proceeds were included in the budget.
"To induce CHS Capital to forbear from exercising its legal right to take possession of the 2016 harvested crops, defendants fraudulently and intentionally misrepresented the volume of harvested 2016 grain by over $6 million to create the illusion of sufficient revenue to offset expenses. Further, the defendants failed to comply with the budget."
The lawsuit said that, because of "misrepresentations" about the quantity and quality of the 2016 crop in storage, Boersen Farms "have insufficient remaining 2016 crop and crop proceeds to pay the expenses to harvest the 2017 crop. The defendants will run out of cash in late August, and will have no money to pay for the expenses of harvesting the soybeans in September."
CHS said in the lawsuit it would be willing to provide funds for harvest to a receivership, but not to Boersen Farms itself.
In addition, CHS alleges the farm sold grain to third parties without notifying the lender.
Some of the larger transactions include about 495,000 bushels of corn to BF Funding LLC, "a newly created entity formed to thwart CHS Capital's Food Security Act notices. Proceeds from these grain sales of approximately $1.9 million were not delivered to CHS Capital, in violation of the security agreements," the lawsuit said.
"Similarly, the borrowers delivered 594,604 bushels of corn to Poet LLC, an Indiana purchaser outside the normal geographic scope of the borrower's historical sales of grain." That sale, according to the lawsuit, generated about $2.2 million in proceeds."
https://www.dtnpf.com/agriculture/web/ag/news/business-inputs/articl...
Edited by NE Ridger 10/12/2017 19:55
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Looks like CHS sold the debt
