Sioux Center, Iowa — Two men who were employed as the general manager and assistant general manager of a Sioux Center-based grain coop have pleaded not guilty after they were indicted by a federal grand jury on charges of Conspiracy to Defraud the United States and making False Statements.
The 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.
While court dates often do not happen when scheduled, the trial for this case has now been set for March 2, 2020, according to court records.
