Northeast Iowa Man Pleads Guilty to Selling Assets Pledged as Collateral for a Farm Loan

A man who had pledged assets as collateral for a United States Department of Agriculture farm operating loan and then sold those assets without notifying the Department he was doing so, pled guilty today in federal court in Cedar Rapids.

Andrew Hansen, age 36, from Decorah, Iowa, was convicted of one count of conversion of property pledged to a farm credit agency.

In a plea agreement, Hansen admitted that he pledged assets, including farm equipment and dairy goats, as security on Farm Services Agency loans he procured to operate a dairy goat farm in northeast Iowa.  Hansen further admitted that, in August 2013, without notifying the Farm Services Agency, he sold goats that he had pledged as security on the loans and then used the proceeds from the sale for his own purposes rather than to pay off the farm loans.  He also admitted to selling various pieces of farm equipment that he had also pledged as security on the loans. 

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared.  Hansen remains free on conditions of release set by the court pending sentencing.  Hansen faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the United States Department of Agriculture.

Court file information is available at https://ecf.iand.uscourts.gov.  The case file number is 15-CR-2039.

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