MiSSouri farMer CharGed in $140-M orGaniC Grain-fraud SCheMe

IOWA CITY, Iowa—A Missouri farmer and businessman ripped off consumers nationwide by falsely marketing more than $140 million worth of corn, soybeans and wheat as certified organic grains, federal prosecutors said on Wednesday.

The long-running fraud scheme outlined in court documents by prosecutors in Iowa is one of the largest uncovered in the fast-growing organic farming industry. The victims included food companies and their customers who paid higher prices because they thought they were buying grains that had been grown using environmentally sustainable practices.

The alleged leader of the scheme was identified as Randy Constant of Chillicothe, Missouri, who was charged with one count of wire fraud. he is expected to plead guilt y during a hearing that is scheduled at the federal courthouse in Cedar Rapids, Iowa, on Thursday.

The charging document calls on Constant to forfeit $128 million to the government along with his interest in 70 pieces of farm machinery and equipment. his attorney, Mark Weinhardt, didn’t immediately return a phone message seeking comment.

Industry watchdog Mark Kastel called the scale of the fraud “jaw-dropping” and probably the largest ever documented involving farmers in the United States. he said the case points to weak oversight of the organic industry by the US Department of Agriculture.

“The number of years they were able to operate at that scale is a betrayal to honest, ethical organic practitioners,” said Kastel, the cofounder of the Wisconsin-based Cornucopia Institute, a policy research group. “Not only do they have to compete against this unfairly, but it tarnishes the reputation of the organic label. It’s a gross betrayal of consumer trust.” AP