Cedar Rapids, Iowa – A Floyd farmer who pledged assets as collateral for a USDA farm loan but then later sold the assets and defaulted on the loan was sentenced on Wednesday to six months in federal prison.
59 year old Leroy Jones received the sentence after pleading guilty to one count of felony conversion of property pledged to a farm credit agency.
Jones did admit that he pledged over 100,000 bushels of corn which was worth more than $300,000 to the USDA as security on two Farm Services Agency loans worth nearly $200,000.
He also admitted that over the course of the next year he sold all the grain he had pledged with the intent to defraud the agency.
Court records show Jones sold more than 10,000 bushels of corn before he pledged the corn as collateral.
The U.S. District Court ordered Jones to make $137,682 in restitution to the Farm Service Agency. A special assessment of $100 was also imposed.
Jones must also serve a two-year term of supervised release after his prison term. Because he was convicted of a felony, he can no longer legally possess firearms or ammunition.