Woman pleads guilty in NW Mo. grain case
Wednesday, November 9, 2011
KANSAS CITY, Mo. (AP) — A northwest Missouri woman has pleaded guilty to a grain fraud scheme that prosecutors say stole more than $3 million from 100 farmers in the region.
The U.S. attorney’s office says that 66-year-old Pauline K. Froman, of Gallatin, pleaded guilty Tuesday to one count of mail fraud conspiracy. Her husband, Daniel F. Froman, pleaded guilty to mail fraud three weeks ago.
The Fromans operated Gallatin Grain Co., which stored and bought grain from northwest Missouri farmers. They acknowledged selling farmers’ grain to pay their debts.
Prosecutors say Pauline Froman knew that farmers were probably being defrauded. They say she also knew that a 2007 financial statement submitted to the state Agriculture Department falsely reported the company’s net worth.
Pauline Froman faces up to five years in prison and a $250,000 fine.