Sioux Center, Iowa — One of two men who were employed as the general manager and assistant general manager of a Sioux Center-based grain coop has changed his plea to guilty in a federal case.
The original indictment, filed in federal court in December alleges that Kenneth Ehrp, the former general manager of the coop, and Calvin Diehl, the former assistant general manager of the coop instructed coop employees to blend soybeans with oats or layer soybeans on top of oats, in violation of the United States Grain Standards Act. The act says that no foreign material, including other types of grain, may be added to grain being marketed, except in certain situations that did not apply in this case.
The indictment cites as a possible reason for their actions, that soybeans are more valuable than oats.
According to the indictment, Ehrp and Diehl made false statements to inspectors and lenders about the amount of oats they had on hand and how much was lost due to “shrinkage.” It says Diehl told a federal examiner that he did not know why a pile of oats was located near a pile of soybeans at one of the coop’s satellite facilities. The indictment alleges this was a false statement.
A superseding indictment filed last month charged Diehl with only Conspiracy to Defraud The United States, to which he has now pleaded guilty. The new indictment charges Ehrp with Prohibited Grain Practice and Making False Statements. Ehrp has pleaded not guilty to the charges, and unless something changes, his trial is scheduled for the first week of August.
