A former grain dealer from north-central Iowa, David Wilcox, has been charged with stealing $4 million from soybean farmers. He was the owner of Global Processing Inc., which is now closed. From 2019 to 2022, Wilcox promised farmers extra money for selling him organic soybeans, but he only paid some of them while avoiding paying others. As a result, farmers had to turn to the Iowa Grain Indemnity Fund, which helps cover losses when grain dealers fail to pay. This caused a $2 million loss and almost drained the fund.
Wilcox faces felony charges for bankruptcy fraud and making false statements in bankruptcy filings. If convicted, he could face up to five years in prison and a $250,000 fine.
The indictment reveals that Wilcox tried to hide his actions from the Iowa Department of Agriculture. He had employees write checks to farmers from the company account but then kept the checks, meaning some farmers didn’t get paid for months or even years. Iowa law requires grain buyers to pay farmers within 30 days of receiving the grain.
Wilcox also hid the true financial situation of his business by mislabeling personal expenses as business expenses. He used money from soybean sales to fund his business and personal expenses, such as buying cattle and paying off personal credit card bills. He also received illegal kickbacks from a trucking operator.
In October 2022, Wilcox filed for bankruptcy, falsely stating his financial situation. He claimed to have personally loaned his company $275,000 when, in reality, the company borrowed that money from a bank. He also failed to report purchases like a $22,000 cow and $88,850 in cattle genetic materials.
The Iowa Grain Indemnity Fund, which helps farmers when grain dealers go bankrupt, was hit hard by Wilcox’s actions and others in 2021 and 2022.
The fund now requires farmers to pay a small fee to help replenish it. The fund, created to protect farmers, covers up to 90% of a farmer’s loss when a grain dealer goes bankrupt.