CEDAR RAPIDS, Iowa – A North Iowa farmer is going to federal prison for loan fraud.
59-year-old Leroy Jones of Floyd was sentenced Wednesday to six months behind bars for pleading guilty to one count of conversion of property pledged to a farm credit agency. He must also pay $137,682.20 in restitution to the Farm Service Agency.
Jones confessed to pledging over 100,000 bushels of corn as security on two Farm Service Agency loans totaling nearly $200,000. Jones then sold all of that corn without notifying the USDA and court records show he began selling the corn even before he pledged it as collateral.
After his prison term, Jones must serve two years of supervised release. Because he was convicted of a felony, Jones has also lost his right to possess firearms or ammunition.