Man admits theft of more than $3 million in grain from farmers

A Huron County man has pleaded guilty to multiple charges related to the theft of more than $3 million in grain from 35 Ohio farmers.

Richard J. Schwan, 79, of Monroeville, pleaded guilty July 9 to two felony counts of aggravated theft, and one felony count each of attempted aggravated theft, falsification in a theft offense, insolvent handler, and delayed price agreement, according to a news release from Ohio Attorney General Mike DeWine and Ohio Department of Agriculture Director David Daniels

As part of the plea agreement, Schwan must pay $3,222,209.70 in restitution prior to his sentencing hearing in August, according to the release. The money will be used to reimburse the farmers, the Ohio Department of Agriculture, and the Ohio Grain Indemnity Fund.

“Ohio’s farmers work hard to produce their crops, and this defendant callously took the profits of their labor,” DeWine said in the release. “Our priority in this case has always been to recover the money that rightfully belonged to these farmers, and a condition of this plea agreement requires the defendant to promptly repay the money he stole.”

Schwan operated Schwan Grain Inc., which transported and sold grain on behalf of the 35 farmers from Erie, Huron, Lorain, Richland and Seneca counties. He was arrested in November after an investigation by the Ohio Department of Agriculture found that between 2012 and 2014, he sold more than $3 million in grain for the farmers, but deliberately failed to pay the victims their shares of the profits, according to the release.

The investigation also found that Schwan filed several financial reports and other documents with the Ohio Department of Agriculture that falsely reported and concealed his liabilities and the money he owed the victims, according to the release.

Of the more than $3.2 million dollars that Schwan must repay, approximately $2.5 million will be used to reimburse the Ohio Grain Indemnity Fund, which previously reimbursed the farmers for the majority of their losses. The fund, which is paid for by Ohio farmers through a half-cent per bushel fee, reimburses farmers when a grain handler becomes insolvent.

“Ohio’s farmers work hard to produce their crops, and this defendant callously took the profits of their labor.” —Ohio Attorney General Mike DeWine

“All of Ohio’s grain farmers pay into the Grain Indemnity Fund and we’re pleased it will be reimbursed for their ultimate benefit,” Daniels said in the release. “We appreciate the work of all parties to resolve this matter, making sure Ohio farmers are protected for years to come.”

The remaining restitution will reimburse the balance of the funds still owed to the farmers and will pay for investigative costs incurred by the Ohio Department of Agriculture.

Farm equipment worth hundreds of thousands of dollars was also seized as part of the investigation.

Schwan will be sentenced before Huron County Common Pleas Court Judge James W. Conway on Aug. 23.