CHICKASAW COUNTY, Iowa (KCAU) — Three family members were sentenced after double-pledging their 2015 crop to two companies without their knowledge.
According to a release from the United States Attorney’s Office, Aime Lyn Rosenbaum, 53, of Lawler, was sentenced to prison on Thursday after she pleaded guilty to one count of conversion of property pledged to a farm credit agency and one count of bankruptcy fraud.
Donald Eugene Rosenbaum, 58, of Cresco pleaded guilty to one count of bankruptcy fraud and was sentenced to prison on Monday.
Marshal Dillion Rosenbaum, 27, of Fredericksburg, was sentenced on April 25 to prison after he pleaded guilty to one count of conversion of property pledged to a farm credit agency.
According to the release, the family members made plea agreements, and over the three-day sentencing hearing for Aimee Lee Rosenbaum, evidence showed that Aimee Rosenbaum and Donald Rosenbaum historically farmed land in Chickasaw County.
In late 2014, Aimee Rosenbaum allegedly told her son, Marshal Rosenbaum, to take out a loan for the 2015 crop year claiming he would be taking over the farm due to Aimee Rosenbaum and Donald Rosenbaum’s health complications.
Marshal Rosenbaum reportedly applied for a crop loan with the United States Department of Agriculture – Farm Services Agency (USDA-FSA) for $165,000 and pledged the farms 2015 farm crop to the USDA-FSA.
Aimee Rosenbaum allegedly then applied for over $1.3 million from their local bank claiming Donald Rosenbaum would continue to farm the land for 2015. The release specified that she applied for the loan on behalf of Donald Rosenbaum by using a power of attorney she’d attained from him. This resulted in the crop being double pledged without the knowledge of the bank or the USDA.
The release stated that the Rosenbaum’s defaulted on both loans and sold the double-pledged crop with little repayment.
Aimee and Donald Rosenbaum filed five bankruptcy petitions in the United States Bankruptcy Court for the Northern District of Iowa after the bank started the foreclosure process on the crop.
The release stated that Aimee and Donald Rosenbaum also filed for two additional bankruptcy petitions that were “in bad faith and on the eve of scheduled Sheriff’s Sales in state court to frustrate and delay the bank’s attempts to obtain repayment for its loans.”
During a bankruptcy hearing that was over the phone, Aimee Rosenbaum allegedly pretended to be Donald Rosenbaum.
It was later discovered that the district court found that Aimee Rosenbaum also allegedly submitted false evidence to the district court at her sentencing hearing.
The Rosenbaums were sentenced in Cedar Rapids by the United States District Court. Aimee Rosenbaum received a sentence of 78 months in prison and was ordered to pay $165,592.21 in restitution to the USDA-FSA, $4,796 to the bank, as well as pay $5,000 in fines, and $7,086.74 in attorney fees for her prior court-appointed counsel. She was also ordered to serve a three-year term of supervised release following imprisonment.
Donald Rosenbaum was sentenced to two years of probation and must pay a $1,000 fine.
Marshal Rosenbaum was sentenced to three months in prison and three months of house arrest. He was also ordered to pay $165,592.21 in restitution to the USDA-FSA jointly and severally with Aimee Rosenbaum. He was also ordered to three years of supervised release following the prison term.
Aimee and Marshal Rosenbaum were released on bonds previously set. They are to surrender to the Bureau of Prisons on dates that have not been set yet.