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News Brief

March 9, 2012GALLATIN, MO |  By: AP

Gallatin Grain Fraud

THe owner of a Gallatin grain company is sentenced to 6 years in federal prison for a fraud that cost more than 100 northwest Missouri farmers an estimated $3 million.

66-year-old Daniel F. Froman also was ordered Thursday to pay more than $2.8 million in restitution. Prosecutors said Froman admitted that he sold grain from 100 farmers in order to pay his debts. He was charged with wire fraud because he mailed a fraudulent financial statement to the Missouri Department of Agriculture. His wife, 66-year-old Pauline K. Froman, has pleaded guilty to conspiracy to commit mail fraud and will be sentenced April 17. The two were co-owners of the company. The state collected $400,000 in assets from the Fromans, which has been distributed to the farmers.