State Audit Explains Fraud

7 years 4 months 1 week ago Thursday, August 05 2010 Aug 5, 2010 Thursday, August 05, 2010 6:26:16 PM CDT August 05, 2010 in News
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JEFFERSON CITY - At a news conference this morning, Democratic State Auditor Susan Montee detailed how two licensed grain dealers defrauded more than 32 million dollars from farmers in 2008. Montee said her audit shows the state can now better catch fraud situations.

Two years the Grain Regulatory Services, which checks up on grain producers, found Audrain County dealer Cathy Gieseker lying about the amount of money she was getting for her grain.   Authorities charged Gieseker with federal mail fraud and she is currently in prison. Around the same time, the GRS suspected Danny Froman of Gallatin of the same offense and in 2009, prosecutors charged him with 22 counts of stealing grain.

Montee called her news conference just two days after she found out Tom Schweich would be her opponent in her run for re-election this November. Republican State Representative Steve Hobbs questioned the timing of the news conference, saying he was glad the report finally came out, but wondering why it took so long. "It's kind of frustrating for us, we have been waiting on this audit for over a year and a half." Hobbs said.  "The legislation was proposed in March or April of 2009 and now today we get the results."

Montee said the Department of Agriculture could have paid more attention to details by checking in with grain producers and their financial reports more often. 

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