An accounts payable audit has found that the owners of Gallatin Grain Company in Gallatin, Missouri, defrauded 110 local farmers of more than $3,113,000, according to the Trenton Republican-Times. Daniel Froman and his wife, Pauline, were recently charged in a five-count indictment returned by a federal grand jury in Kansas City.
The indictment alleged that the Fromans submitted a false and fraudulent financial statement to the Grain Regulatory Services section of the Missouri Department of Agriculture in 2007 that grossly inflated their net worth from negative $936 to more than $662,000, as well as understating their accounts payable. The statement was later used to obtain $500,000 in loans.
The couple was also charged with selling grain without farmers' permission, wrongfully withholding proceeds of sales and committing bank and mail fraud, the news source reports. Daniel Froman faces additional charged with one count of wire fraud and one count of interstate transportation of stolen property. If convicted, he faces $2 million in fines and up to 85 years in prison.
Froman was arrested in 2009 for sexual assault and two counts of tampering with a witness, according to the Gallatin North Missourian. The case is still pending.