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Ashby Creditors Settle for $1.5M

Continue to pursue $11,500 in co-op funds Jerry Hennessey illegally used to pay for a house

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Creditors of the defunct Ashby Farmers Cooperative Elevator Co. have settled a claim with its former board members for failing to uphold their fiduciary responsibility and monitor the actions of former manager Jerry Hennessey, who stole millions of dollars from the elevator, reports the Duluth News Tribune.

The $1.45 million settlement will be paid entirely out of the cooperative's $1.5 million "directors and officers" insurance policy.

Separately, the creditors will go after the man who drove Hennessey away to Iowa in 2018, saying Hennessey in 2012 used $11,500 in co-op funds to buy the man’s home in Fergus Falls, MN.

Hennessey remains in federal prison in North Carolina after pleading guilty to stealing $5.4 million from the elevator over at least 15 years, using the money for big game hunting trips around the world.

As a result of his embezzlement, the elevator became insolvent with $10 million owed to creditors, which include area farmers.

Related Reading:

Charges Filed Against Former Ashby Bookkeeper

Ashby Elevator Victims Likely to Get Fraction of What is Owed

Ashby Farmers Co-Op Elevator Sues Taxidermist

Ashby Elevator Manager Receives 8 Years for Theft

What Co-ops Can Learn from Ashby Elevator Scandal

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