Grain Dealers Face More Financial Restrictions
JEFFERSON CITY, Mo. (AP) -- Gov. Jay Nixon is signing legislation that imposes more stringent financial requirements on agricultural grain dealers.
Nixon plans to hold a bill signing ceremony Monday at a feed store in Mexico, Mo., which is near the site of what prosecutors have described as the biggest grain fraud scheme in Missouri history.
Cathy Gieseker, of Martinsburg, was sentenced to prison last year on federal and state fraud and theft charges. Authorities say she duped about 180 farmers out of $27 million in grain deals as her business became insolvent.
The legislation requires grain dealers to maintain a net worth of at least 5 percent of their annual grain purchases. It also doubles the minimum surety bonds they must have. And it expands their financial reports to the state.