Assistant U.S. Attorney Anthony Morfitt Archives

North Missouri businessman receives ten years in federal prison for $142 million grain fraud scheme

August 17, 2019 By Brian Hauswirth

A prominent northwest Missouri businessman and former school board member will spend the next ten years in federal prison for a $142 million grain fraud scheme, after being sentenced Friday afternoon in U.S. District Court in Cedar Rapids, Iowa.

Assistant U.S. Attorney Anthony Morfitt tells Missourinet that Randy Constant was sentenced on Friday to 122 months in federal prison, which is about ten years. Constant had faced up to 20 years in prison.

Officials from the U.S. Attorney’s office, the FBI and the United States Department of Agriculture (USDA) have called a press conference for Monday morning at 11:30 in Cedar Rapids to discuss the case. The press conference will take place at the federal courthouse.

The 61-year-old Constant is well-known across north Missouri, and is a former Chillicothe School Board member.

Constant pleaded guilty in federal court in Iowa in December to one count of wire fraud. He admits the grain fraud scheme totaled more than $142 million, and that he misled customers into thinking they were buying certified organic grain when it was not organic.

It’s unclear which prison that Constant will serve his sentence at. That decision will be up to the Federal Bureau of Prisons (BOP).

August sentencing date set for Missouri businessman involved in grain scheme

July 7, 2019 By Brian Hauswirth

A northwest Missouri businessman and former school board member faces a potential lengthy federal prison sentence, for a $142 million grain fraud scheme.

61-year-old Randy Constant is a prominent businessman and is also a former Chillicothe School Board member.

Federal prosecutors in Iowa say Constant pleaded guilty in federal court in December to one count of wire fraud. Assistant U.S. Attorney Anthony Morfitt tells Missourinet Constant is scheduled to be sentenced by U.S. District Court Judge C.J. Williams in Iowa on August 16.

Constant faces a maximum sentence of 20 years in federal prison and a fine of up to $250,000.

Assistant U.S. Attorney Morfitt says Constant admits the grain fraud scheme is more than $142 million. Constant misled customers into thinking they were buying certified organic grain when it was not organic.

Prosecutors also say Constant admits falsely telling customers the grain he sold was grown on his certified organic fields in Nebraska and Missouri. Prosecutors say the certified organic fields were sprayed with unauthorized substances.

As part of his December plea, Constant agreed to forfeit about $128 million in proceeds from the fraudulent scheme.

Three Nebraska farmers who pleaded guilty to the scheme will also be sentenced on August 16 in Cedar Rapids. Morfitt says the three farmers, who are from Overton, Nebraska, also pleaded guilty to one count of wire fraud.

Both the United States Department of Agriculture (USDA) and the FBI have investigated the case.