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Ex-Sioux City ag co-op officer gets prison for fraud scheme

Ag/Outdoor, News

March 25th, 2021 by Ric Hanson

SIOUX CITY, Iowa (AP) — A second former officer at a northwest Iowa agriculture cooperative has been sentenced to federal prison for a grain-blending fraud scheme. The Sioux City Journal reports that Kenneth Ehrp was sentenced Wednesday to three months in prison after pleading guilty in November to one count of conspiracy to defraud the government. Prosecutors say Ehrp and another officer, Calvin Diehl, ordered Farmers Cooperative Society workers to layer soybeans over lower-value oats in bins and trucks while claiming the entire load was soybeans.

Prosecutors say the scheme to overvalue the co-op’s grain inventory was conducted to influence a lender’s action on a loan. Diehl was also sentenced to three months in February on the same charge.