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Floyd farmer sentenced to federal prison for farm loan fraud

This news story was published on October 13, 2016.
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jailCEDAR RAPIDS – An Iowa farmer who pledged assets as collateral for a United States Department of Agriculture (USDA) farm operating loan but later sold the assets and subsequently defaulted on the loans was sentenced today to six months’ in federal prison.

Leroy Jones, age 59, from Floyd, Iowa, received the sentence after a guilty plea to one count of conversion of property pledged to a farm credit agency.

At the guilty plea, Jones admitted that he pledged over 100,000 bushels of corn worth more than $300,000 to the USDA as security on two Farm Services Agency loans worth nearly $200,000. Jones further admitted that over the course of the next year he sold all of the grain he had pledged without notifying the USDA and that he did so with intent to defraud that agency. Court records show that Jones had actually sold over 10,000 bushels of corn before he had even pledged that corn as collateral.

Jones was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. He was sentenced to six months’ imprisonment. A special assessment of $100 was imposed and he was ordered to make $137,682.20 in restitution to the Farm Service Agency. Jones must also serve a two-year term of supervised release after his prison term. Because Jones was convicted of a felony, he can no longer legally possess firearms or ammunition.

The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the United States Department of Agriculture.

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5 Responses to Floyd farmer sentenced to federal prison for farm loan fraud

  1. Anonymous Reply Report comment

    October 14, 2016 at 7:45 am

    They farmers rape the land, pollute the water, cheat the lender, screw the taxpayers with food prices and then want more government welfare (subsidy’s).

    • Anonymous Reply Report comment

      October 14, 2016 at 8:47 am

      Wanna buy a farm? Ride the gravy train know it all.

  2. 12345678910guy Reply Report comment

    October 13, 2016 at 5:40 pm

    Mr. Jones is just a pawn in the game of life………you can’t cheat an honest man…….(they won’t read this, if they do, they know who I am talking of.)

  3. Allen Reply Report comment

    October 13, 2016 at 3:56 pm

    Say it isn’t so, a farmer defrauding the government. And now prison time, how will I ever find enough food to eat.

    • Anonymous Reply Report comment

      October 13, 2016 at 5:56 pm

      Just as bad as the imports. Send them farm welfare cheats back to where they came from.