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Minnesota farmer sentenced for organic grain fraud

The court ordered him to pay $26,000 in restitution, $4,000 in civil penalties and $1,400 for the attorney general's costs.

Lady Justice On Roof Pixabay Edward Lich

Attorney General Drew Wrigley revealed that the Stutsman County District Court has entered judgment against David Alex Hansen of Elbow Lake, Minnesota. Operating under the business name Hansen Elevator Service, Hansen engaged in consumer fraud by contracting elevator services for various locations in North Dakota but failed to fulfill his obligations. The court ruled in favor of the Attorney General, banning Hansen from elevator servicing and repair in North Dakota for a second time. Additionally, Hansen is obligated to pay $26,000 in restitution, $4,000 in civil penalties, and the Attorney General's costs amounting to $1,400.

This case came to light while Hansen was already under a five-year ban imposed by the Cass County District Court in November 2021, where he was found guilty of consumer fraud against three condominiums and a grain elevator. The court ordered Hansen to pay $100,000 in restitution at that time.

The Stutsman County District Court, besides finding Hansen guilty of scamming four more victims, held him in contempt. Hansen was sentenced to 30 days in jail, with 30 days suspended, pending no further violations of the ban. The court imposed a fine of $2,000 per day for any future violations and mandated Hansen to pay restitution of $1,000 per month to his victims. A related criminal case is still pending.

Attorney General Wrigley emphasized that Hansen's fraudulent activities have permanently barred him from engaging in elevator repair services or any contracting work in North Dakota. With the threat of future jail time and substantial monetary sanctions, Wrigley hopes this case will deter potential fraudsters from harming consumers.

In a separate but equally significant case, a Minnesota farmer, James Clayton Wolf, has been sentenced to three years in prison and two years of supervised release for his role in a conspiracy to sell conventionally grown corn and soybeans as organic products. Wolf pleaded guilty to wire fraud, admitting to purchasing non-organic grains and reselling them as organic between 2013 and 2021, generating net profits of over $19 million.

Wolf's nephew, Adam Clifford Olsen, also faced legal consequences, receiving a prison sentence and two years of supervised release for making a false statement. Olsen had falsely represented that he understood Wolf's fields to be organically certified when signing a crop insurance document. The case was the result of a joint investigation by the U.S. Department of Agriculture’s Office of Inspector General, the Federal Bureau of Investigation, and the U.S. Marshals Service.

U.S. District Judge Kate Menendez, presiding over Wolf's case, emphasized the severity of defrauding the organic sector and sentenced him to three years in prison. Wolf, who lost his organic certification in 2020, will forfeit property, including land and farm equipment, as part of a $19.7 million judgment.

These cases underscore the commitment of law enforcement to uphold justice and protect consumers from fraudulent agricultural practices. As the legal system continues to crack down on such offenses, it sends a strong message that honesty and integrity must prevail in the agricultural industry.

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