A Missouri man who assisted in perpetrating the largest organic grain fraud scheme in United States history was sentenced today to nearly two years in federal prison.  Another Missouri man and three farmers from Nebraska were previously sentenced to federal prison for their roles in a scheme to defraud customers across the country.

John Burton, age 52, from Clarksdale, Missouri, received the prison term after a May 10, 2019 guilty plea to one count of conspiracy to commit wire fraud.  Evidence at sentencing showed that Burton grew grain that was not organic and sold it to Randy Constant, knowing that Constant was going to market and sell the grain as organic.  By selling his grain to Constant, Burton was able to receive a premium, selling the grain for more than he could have on the open market.  Burton also worked for Constant, raising grain on farm fields that Constant either owned or rented.  While doing this work, Burton often sprayed Constant’s fields with chemicals and fertilizers, even though he knew those substances were not allowed on organic fields.  Burton either sold or raised over $5,000,000 in crops for Constant.  Overall, Constant’s scheme involved at least $142,433,475 in grain sales, and the vast majority of those sales were fraudulent in that the grain he sold was not organic even though it was marketed as organic. 

Burton was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams.  Burton was sentenced to 22 months’ imprisonment.  He was also ordered to forfeit over $1,000,000 in proceeds from his crime and was ordered to pay a $100,000 fine.

The case was prosecuted by Assistant United States Attorneys Jacob Schunk and Anthony Morfitt and investigated by the United States Department of Agriculture – Office of Inspector General and the Federal Bureau of Investigation. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number are 19-CR-2025.

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A Missouri man who conspired with others to sell grain fraudulently marketed as organic pled guilty today in federal court in Cedar Rapids. 

John Burton, age 52, from Clarksdale, Missouri, was convicted of one count of conspiracy to commit wire fraud.  As part of the conspiracy, he admitted that grain grown on non-organic fields was marketed and sold as organic and that unapproved substances were used on fields certified as organic. 

Burton’s plea is related to Randy Constant’s plea from December 20, 2018, when Constant, age 61, from Chillicothe, Missouri, pled guilty to an organic grain fraud scheme involving at least $142 million in grain sales with the vast majority of those sales being fraudulent.  Constant made many of those sales through a brokerage that he owned and operated out of Ossian, Iowa, known as Jericho Solutions.  In other related matters three farmers from Nebraska previously pled guilty to fraud involving the sale of grain fraudulently marketed as organic – Tom Brennan, age 70; James Brennan, age 40; and Mike Potter, age 41 – all from Overton, Nebraska.

Sentencing for Randy Constant, Tom Brennan, James Brennan, and Mike Potter is scheduled for August 16, 2019, before United States District Court Judge C.J. Williams, at the United States Courthouse in Cedar Rapids.  Burton’s sentencing will be set after a presentence report is prepared.  Burton remains free on bond previously set.  Burton faces a possible maximum sentence of 5 years’ imprisonment, a fine of at least $250,000, and 3 years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorneys Jake Schunk and Anthony Morfitt and investigated by the United States Department of Agriculture – Office of Inspector General and the Federal Bureau of Investigation. 

Court file information is at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file numbers are 19-CR-2025 (Burton), 18-CR-2034 (Constant), 18-CR-2058 (T. Brennan), 18-CR-2059 (J. Brennan), and 18-CR-2060 (Potter).

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