KANSAS CITY, Mo. (CN) – The husband-and-wife owners of a northwest Missouri grain company face federal charges that they defrauded farmers of more than $3 million.
Daniel Froman, 66, is charged with conspiracy, mail fraud, wire fraud, bank fraud and interstate transportation of stolen property.
His wife Pauline Froman, 65, is charged with conspiracy, mail fraud and bank fraud.
The Fromans operated Gallatin Grain, which bought and stored grain from farmers in Daviess County, 70 miles northeast of Kansas City.
The Fromans allegedly sold the farmers’ grain without the farmers’ permission and withheld money from the sales. They also are accused of submitting fraudulent financial statements to the state.
Prosecutors seek forfeiture of $3.1 million the Fromans allegedly gained from the scheme.
If convicted, they Fromans face up to 5 years in prison and $250,000 fines for conspiracy; 20 years in prison and $250,000 in fines for mail fraud and wire fraud; 30 years in prison and $1 million in fines for bank fraud; and up to 10 years in prison and $250,000 in fines for transportation of stolen goods.