PEORIA - Two men formerly associated with Towanda Grain Company have been sentenced to six and ten years in prison.
Federal prosecutors report Central Illinois farmer 46-year-old Robert James Printz of Fairbury, was handed a 10 years prison term and former Towanda Grain manager 37-year-old Timothy Boerma of Lincoln was sentenced to six years in prison.
The Peoria Journal Star reports the pair pleaded guilty in May 2013 to operating a scheme which defrauded CNH Capital. According to federal prosecutors, CNH Capital provided Printz with a line of credit for his farming operation (from September 2009 to May 2010). They said in October 2009, Printz started to deliver grain to Towanda Grain as he reached the maximum on his line of credit.
Prosecutors said Boerma handled Printz's transactions and issued grain advance checks payable only to Printz, which was in violation of the CNH Agreement. Printz reportedly continued to get advances from Boerma at more than twice the value of the grain delivered.
According to Printz, he received $13.1 million from Towanda Grain but repaid only $6.1 million.
The Illinois Department of Agriculture suspended Towanda Grain's license in 2010 and later facilitated a sale to Evergreen FS.