Mississippi Delta Grain Elevator Owner Sentenced for Fraud

OXFORD, MS – A Greenwood man was sentenced today to 10 years in prison and ordered to pay more than $69 million in restitution for committing millions of dollars in fraud in connection with operation of a grain elevator in the Mississippi Delta.

According to court documents, John R. Coleman, 48, was the owner and operator of Express Grain, a grain elevator in the Greenwood area that purchased, processed and stored grain that had been harvested by local farmers. Coleman altered the audited financial statements of Express Grain in order to receive a State warehouse license, lied about the amount of debt he owed on grain held at the Express Grain facility, and claimed to farmers that Express Grain was financially healthy when, in fact, Express Grain was on the brink of bankruptcy. Express Grain eventually filed bankruptcy in 2021 causing widespread financial hardship for farmers all over the Mississippi Delta.

United States District Judge Micheal P. Mills sentenced Coleman to serve 120 months in prison, followed by 5 years of supervised release and ordered him to pay $69,841,797 in restitution to his victims.

Following the sentencing, both state and federal leaders acknowledged the importance of this investigation and prosecution to the State of Mississippi and condemned the defendant’s fraudulent actions which cost Mississippi farmers millions of dollars.

“This defendant’s actions were unconscionable and affected the livelihood of a large number of farmers, and he has fully earned the sentence imposed today,” said U.S. Attorney Clay Joyner. “We commend and appreciate the work done by the Mississippi Attorney General’s office and our federal law enforcement partners, without whom a conviction would not have occurred.”

"This sentence should serve as a stark reminder to that those who seek to deceive and exploit Mississippians - you will be held accountable,” said Attorney General Lynn Fitch. “Thank you to our federal and state partners for your commitment to working with us to investigate and prosecute these crimes. My office will continue to fight on behalf of hardworking Mississippi taxpayers and farmers, and we look forward to our day in State court in the coming weeks.”

"This sentence demonstrates the FBI’s commitment to investigating individuals like Mr. Coleman who betrayed the trust of farmers throughout Mississippi,” said FBI Special Agent in Charge Robert Eikhoff. “The FBI continues to work with federal and state partners to investigate complex financial crimes to identify, deter, and disrupt individuals fraudulently harming financial institutions and Mississippians."

“I want to thank the US Attorney’s Office, OIG special agents, and our investigative partners for their hard work on this investigation,” said Special Agent in Charge Dax R. Roberson, for the Office of Inspector General of the United States Department of Agriculture. “When the integrity of our nation’s farming and ranching industry is violated by criminal conduct, the Office of Inspector General will pursue justice to the fullest extent of the law.”

“The defendant caused extensive financial harm to Mississippi farmers who bring economic output in their communities and feed the population, making them the backbone of our society,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents are working on behalf of the farmers and the general public to investigate and bring to justice those whose criminal actions bring financial and emotional hardship into their lives.”

The Federal Bureau of Investigation, Mississippi Attorney General’s Office, United States Department of Agriculture Office of Inspector General, and Internal Revenue Service Criminal Investigations investigated the case.

Assistant U.S. Attorney Clayton A. Dabbs prosecuted the case.