Utah Man Pleads Guilty to Fraudulently Concealing and Transferring Assets in Bankruptcy
BOISE – Farrell Larson, 67, of Meadow, Utah, pleaded guilty today in United States District Court to one count of fraudulent transfer and concealment of assets in a bankruptcy, U.S. Attorney Wendy J. Olson announced. Larson was charged by information on June 1, 2015, by the United States Attorney’s Office.
According to the plea agreement, Larson was the President and co-owner of Select Onion and Larson Land Company, LLC, which operated an onion farm and onion processing plant in Ontario, Oregon. Larson Land Company merged with Select Onion and filed Chapter 11 bankruptcy in the District of Idaho in 2012, with Larson signing as debtor. On April 19, 2012, the Honorable Terry L. Myers, Chief Bankruptcy Judge for the District of Idaho, held that Larson could not utilize cash collateral of Larson Land Company or Select Onion. In his plea agreement, Larson admitted that on April 20 and 23, 2012, he caused a total of $56,000 in cash to be withdrawn from Select Onion bank accounts. The cash represented assets obtained by Select Onion after the filing of bankruptcy. The withdraws and subsequent transfer of the money was done without the knowledge or authorization of the bankruptcy court or trustee. In his plea agreement, Larson admitted to knowingly concealing assets from the trustee, his creditors, and the bankruptcy court with the intent to defraud.
A violation of fraudulent transfer and concealment of assets is punishable by a term of imprisonment of up to five years, a term of supervised release of not more than three years, a maximum fine of $250,000, and a special assessment of $100. The Court also may order restitution to the victims of the crime. As part of his plea, Larson agreed to forfeiture of at least $47,000 as proceeds of the charged offense.
Larson's sentencing is scheduled for September 8, 2015, before U.S. District Judge Edward J. Lodge.
The case was investigated by the Special Inspector General for the Troubled Asset Relief Program and the Internal Revenue Service-Criminal Investigation.