Sioux Center, Iowa — The other of the two men who were employed as the general manager and assistant general manager of a Sioux Center-based grain coop has now changed his plea to guilty also in a federal case.
The original indictment, filed in federal court in December 2019 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 earlier this year charged Diehl with only Conspiracy to Defraud The United States, to which he pleaded guilty in June.
Ehrp changed his plea to guilty on Monday to one count of Conspiracy To Defraud the United States. Charges of Prohibited Grain Practice and two counts of Making False Statements were dropped.
If sentenced to the maximum extent of the law, Ehrp could face up to five years in prison without the possibility of parole, and a fine of not more than $250,000, along with other conditions and a special assessment.
