SIOUX CITY, Iowa (KCAU) – An Iowa farmer was sentenced for his role in a scheme to defraud financial institutions.
According to a release, Michael Throne, 61, of Scarville, Iowa, will serve a two-year prison sentence and is ordered to pay $1,474,964.61 in restitution to the First State Bank of Kiester and $625,445.48 in restitution to the Farm Service Agency (FSA). Throne will have to serve a two-year term of supervised release after his prison term.
It was revealed that sometime before January 2018 and before he obtained his 2018 operating loans, Throne began stealing from, and lying to, his banks. He began converting the property that had been pledged to the banks as collateral and began overstating the value of the remaining collateral in order to obtain additional funds. He even altered futures contracts to inflate his anticipated income streams. When his scheme collapsed and was detected by the bank, he confessed his crimes to the bank.
Throne was charged with one count of false statement to a financial institution on Feb. 12. He was previously released on a bond but is now set to surrender to the Bureau of Prison on a date yet to be set.
The case was investigated by the USDA, Office of Inspector General, and the Federal Bureau of Investigation.