The USDA had ordered Lynch Livestock to cease and desist from the same improper buying and weighing practices in October 2017 and to pay a $15,000 fine and restitution to two companies that were the primary targets. Get an email notification whenever someone contributes to the discussion. In addition, the company paid fines and restitution and updated processes. They also say they have paid restitution to affected sellers. Gary Lynch expressed confidence that positive changes will be made under Sutherland, who spent decades as an executive with Johnsonville Sausage. IOWA CITY, Iowa (AP) For the second time in four years, an influential nationwide pork dealer has been sanctioned by federal regulators for illegal buying practices that cheated hog sellers out of hundreds of thousands of dollars. Knorr has stated in a civil lawsuit, he believes the subsequent actions of the Health Department cost him his contract to start a new hog farm in 2014. Create a password that only you will remember. The U.S. Attorneys Office for the Northern District of Iowa on Thursday charged Waucoma-based Lynch Family Companies Inc., formerly Lynch Livestock, with one count of failing to comply with an order of the secretary of agriculture. The prosecutor believes the final outcome of the lawsuit could be monetary damages against the county, which could cost taxpayers. Support our award-winning, independent journalism with a subscription today. Although this situation arose due to the actions of a few employees at one buying station, we take this matter very seriously, Gary Lynch, 74, was quoted as saying. Blue managed Lynch Livestocks sow inventory and, no later than 2012, joined the scheme. At a 2019 event for Iowa Select Farms owner Jeff Hansens charity, Lynch paid $4,350 to win an auction for an afternoon with the governor, including lunch at her mansion and a Capitol tour. Knorr also maintains the Health Department is using tax payer money to pursue the lawsuit without permission of the commissioners. Charlie Lynch, age 65, of Fort Atkinson, Iowa, pled guilty on July 25, 2022, to one count of Conspiracy to Defraud the United States. Lynch Livestock operates buying stations in Iowa and several other states where hog farmers and producers sell their animals. His foundations annual banquet in June featured Minnesota Vikings head coach Mike Zimmer and Iowa States football and basketball coaches. We have already made great strides in establishing new processes and procedures to empower employees and ensure producers receive fair compensation.. Knorr noted in his reply to the lawsuit he'd notified in 2010 the three Andrew County commissioners he planned to create a hog farm. Waucoma-based Lynch Livestock ordered to pay $446K penalty, Jul. This file photo shows hogs in a confinement building in Iowa. The same day, a new Lynch Livestock was incorporated. Sutton Paulsen smiles and she and her horse, Buck The Trend, clear the bridge on the trail horse obstacle course on Friday during performance class horse show at the Black Hawk County 4H and FFA Fair in Waterloo. U.S. Attorney's Office, Northern District of Iowa, Defrauded Producers and Farmers Throughout the Midwest for Nearly Two Decades, Offender Reentry and Crime Prevention Efforts, Livestock Dealer and Four of Its Managers Sentenced in Widespread Pig Fraud Scheme, https://ecf.iand.uscourts.gov/cgi-bin/login.pl, Hong Kong Company, CEO, Agree to Permanent Injunction, Abandon Funds Fraudulently Obtained from Iowa Company, Former Go Cedar Rapids Executives Sentenced to Federal Prison, Cedar Falls Man Sentenced to Federal Prison in Check Kiting Scheme. Victoria Ulrich and her horse, Razzle, trot through the trail horse obstacle course during the performance class horse show at the 2021 Black Hawk County 4H and FFA Fair in Waterloo. In both enforcement actions, Lynch Livestock cooperated with investigators and agreed to settle the alleged violations without admitting or contesting them. The agency ordered Lynch Livestock to pay $445,626 in penalties and restitution, and to stop recording false weights, altering classifications of hogs delivered The USDA documents identified Iowa Select Farms, the states largest pork producer, as one of the victims. WAUCOMA A bookkeeper at a Waucoma-based livestock dealer has been sentenced to six months behind bars as part of a fraud investigation. Winds NW at 15 to 25 mph. In October 2017, the USDA fined Lynch Livestock $15,000, ordered the company to pay restitution to two major hog producers and demanded those practices be stopped. The USDA redacted the name of others and the amount of restitution sellers were to be paid. The USDA said that the company immediately took corrective action even before agreeing to the latest consent order. 1, 2023 6:23 pm6h ago, State Government May. He also had a Land Disturbance permit from DNR. On January 13, 2023, Blue was sentenced to five years of probation and fined $1,000. Thank you for signing up. Thoms initially worked as a bookkeeper in Lynch Livestocks headquarters building with Wickham, Lynch, and Blue and then, from about 2018 to early 2021, managed Lynch Livestocks buying station at Waucoma, Iowa. Billie Joe Wickham, 51, of Waucoma, was sentenced to six months in prison and fined $3,000. The Health Department regulations would require the farm to be five miles from Savannah. Wickham would then allegedly use a manual scale at the headquarters to create fraudulent scale tickets with the lower weights and classifications. Knorr also got yet another new Land Disturbance permit from Natural Resources. Lynch Livestock operated buying stations in the Northern District of Iowa and elsewhere. You will begin to receive ourDaily News updates. 1, 2023 6:18 pm6h ago, Crime and Courts May. WAUCOMA A federal grand jury has indicted two men on allegations they shorted livestock producers when they worked for a hog dealer in 2016. Official websites use .gov We won't share it with anyone else. Don't Threaten. According to Lynch Family Companies, the business first became aware of the issues at its hog buying stations in 2017. Lynch Livestock Inc Business Data 331 3rd St NW, Waucoma, IA 52171, USA (563) 776-3311 charliel@lynchlivestock.com www.lynchlivestock.com AllBiz Business Profile Search Shortly after his brothers firing, Gary Lynch in May 2017 self-reported irregularities in his companys weighing practices to USDA and asked for an audit, records show. The Iowa State Patrol says 70-year-old Steven Demaray was driving a truck when he crashed head-on into a concrete pillar near New Hampton, where he lived. In October 2017, the USDA fined Lynch Livestock $15,000, ordered the company to pay restitution to two major hog producers and demanded those practices be The investigation also identified two dates in June 2016 when Lynch falsely represented ownership in livestock advertised for sale, and then accepted payment for this livestock he did not own. The agency ordered Lynch Livestock to pay $445,626 in penalties and restitution, and to stop recording false weights, altering classifications of hogs delivered, The Iowa Pork Producers Association named him an honorary master producer the next year. WebCharlie Lynch was associated with Lynch Livestock Inc in 2018. WAUCOMA Prosecutors have charged an Iowa livestock company in an ongoing investigation into allegations its employees shorted hog producers. Stevenson in a written document on May 12, before the Health Department filed its lawsuit, advised the county commissioners and the Health Department that the regulation regarding CAFO and a county permit are "unconstitutional and unenforceable." WASHINGTON, July 23, 2021 The U.S. Department of Agriculture (USDA) reached a consent decision and order against Lynch Livestock Inc. of Wacoma, Iowa, To effectuate the fraud, managers at Lynch Livestocks headquarters created false and fraudulent scale tickets bearing the initials of the managers at the buying stations. Please add erin.jordan@thegazette.com and brittney.miller@thegazette.com to your contacts. In its plea agreement, Lynch Livestock agreed the amount of loss from the fraudulent conduct prior to 2018 was greater and not isolated to the two corporate customers or two buying stations. Lynch said it investigated the allegations and terminated an unspecified number of employees who engaged in those practices. 2023 The Gazette | All Rights Reserved. He maintains the board didn't have the regulation on its Nov. 23 agenda, didn't post a required 24-hour advance notice they'd be discussing the regulations and altered the setback requirements to deliberately deny any CAFO to be approved in Andrew County. As part of an investigation by the U.S. Attorney's office in Cedar Rapids, a federal grand jury on Nov. 4 indicted Demaray and former Lynch Livestock bookkeeper Billie Joe Wickham on two counts of mail fraud. The Health Department's board of trustees, back in 2010, established regulations for CAFO's wanting to operate within the county. In its civil lawsuit, the Health Department has admitted it isn't a separate legal entity and therefore is part of the county. Submitting this form below will send a message to your email with a link to change your password. Our company is built on a strong foundation of integrity and trust, and this action is consistent with those principles.. He even tried to get an Andrew County Health Department permit even though he believed the Health Department's regulation wasn't enforceable. The government alleges employees at the business routinely downgraded the weights and classifications of hogs it purchased at buying stations across the Midwest in order to save money. 1, 2023 6:17 pm6h ago. WAUCOMA A Waucoma-based livestock buyer has been sentenced to probation, restitution and a fine in connection with allegations employees che. Federal government websites always use a .gov or .mil domain. Gary Lynch then reported the irregularities to the USDA, which launched its investigation. This is the name that will be displayed next to your photo for comments, blog posts, and more. Be Nice. The charge, which was filed Thursday, alleges the company violated a 2017 consent agreement with the U.S. Department of Agriculture to settle allegations employees falsified scale tickets and other purchasing documents. Lynch Livestock would then pay the farmers far less than what the company really owed. The defendants were sentenced in Cedar Rapids by United States District Court Judge C.J. Get the latest Agricultural Marketing Service news at www.ams.usda.gov/news or follow us on Twitter @USDA_AMS. Ansli Cox of Cedar Falls tries to match live specimens of prairie plants and flowers with names on a chart at the University of Northern Iowa's Tallgrass Prairie Outreach Center exhibit during the STEM Fair at the 2021 Black Hawk County 4-H and FFA Fair in Waterloo. Lynch announced those moves in a press release posted online Wednesday, after The Associated Press reported that the U.S. Department of Agriculture had taken enforcement action against the company for illegal buying practices for the second time since 2017. 111 7th Ave, SE 2023 The Gazette | All Rights Reserved. Gary Lynch also owns packing plants in Iowa and Minnesota and a roasting plant in Decorah. WAUCOMA A livestock station manager accused of manipulating scales when weighing pigs has pleaded to federal charges in a fraud investigation. Gary Lynch, 74, hasnt responded to a phone message and an email seeking comment. Wickham also had a leadership role in the conspiracy, directing other employees to stamp fraudulent scale tickets and to manipulate the sorting of swineto lower the values for producers. Vigortone is a Delaware corporation with its principal place of business in Cedar Rapids, Iowa. Lynch Livestock has livestock stations in Illinois, Iowa, Minnestota, Missouri, Nebraska and South Dakota. Have a question about Government Services? An Iowa Select Farms spokeswoman declined comment. Notifications can be turned off anytime in the browser settings. Our company is built on a strong foundation of integrity and trust, which is essential to our relationship with our customers.. The agency ordered Lynch Livestock to pay $445,626 in penalties and restitution, and to stop recording false weights, altering classifications of hogs delivered, and creating false scale tickets. Gary Lynch also owns packing plants in Iowa and Minnesota and a roasting plant in Decorah. Read More Contact Gary Lynch's Phone Number and Email Last Update 10/19/2022 7:39 AM Email g***@lynchlivestock.com Engage via Email Contact Number (563) ***-**** Engage via Phone Mobile Number (***) ***-**** Engage via Mobile HQ Phone (563) 776-3311 Knorr is maintaining in his response to the civil lawsuit, that the Health Department's CAFO regulations are illegal and void. 1, 2023 11:53 am12h ago, By Jennifer Smith, - Dangerous Leader columnist, Business News Apr. In a press release, officials said investigators uncovered the wide-ranging scheme, which caused more than $3 million in loss. Lynch Livestock, based in Waucoma, has been ordered to stop recording false weights for hogs delivered to its buying stations, to stop altering classifications of hogs delivered and to stop creating false scale tickets. An official website of the United States government. Lynch Livestock said that it had fired employees responsible for the latest violations and announced pork industry veteran Dan Sutherland would be its new chief executive officer, but a federal grand jury soon began hearing testimony about the fraud anyway. Nov. 16, 2021 10:47 am, Updated: Nov. 16, 2021 6:16 pm. (Jim Slosiarek/The Gazette), to win an auction for an afternoon with the governor. On February 10, 2023, Lynch Livestock was sentenced to five years of probation, fined $196,000, and ordered to pay over $3 million in restitution to livestock Competitors in the trail horse class wait in the warm up ring during a horse show at the 2021 Black Hawk County 4H and FFA Fair in Waterloo. Share sensitive information only on official, secure websites. There was a problem saving your notification. Sign up for our newsletter to keep reading. Addnewsletters@thegazette.comto your contacts. Share with Us. The USDA redacted the name of others and the amount of restitution sellers were to be paid. Your e-mail address will be used to confirm your account. Elsie McIntosh of Dunkerton, 13, wears virtual reality goggles to watch a NASA rocket launch simulation at the Iowa State University Extension and Outreach exhibit at the 2021 Black Hawk County 4-H and FFA Fair in Waterloo. But the problems did not stop, in at least one of its buying stations. When Demaray would get a fax from a buying station manager detailing a purchase, he would arbitrarily lower the weights and quality classifications of the animals, reducing their cost by thousands of dollars, the indictment alleged. Lynch Livestock, based in Waucoma, Iowa, also announced that pork industry veteran Dan Sutherland would lead the company going forward as a further safeguard against future violations, citing Sutherlands experience in compliance matters. Demaray had pleaded not guilty. Wickham must also serve a three-year term of supervised release after the prison term. Stevenson also told the Health Department, he knew of "no authority which allows the health department to proceed in its own capacity and seek to cloak itself with some type of "official immunity" which it does not have in a case like this." On January 13, 2023, Lynch was sentenced to five years of probation and fined $3,000. The charge alleges that from as early as 2018 until March 2021, workers resumed the conduct, in one case using a crowbar or similar tool to manipulate scales at a buying station. IOWA CITY, Iowa (AP) An influential hog dealer sanctioned twice for defrauding pork producers out of hundreds of thousands of dollars says it has fired employees responsible for its latest violations and paid restitution to affected sellers. Waucoma, Iowa-based Lynch Family Companies, Inc., known as Lynch Livestock, pleaded guilty in July 2022 to one count of failing to comply with an order of 30, 2023 5:00 am1d ago, State Government May. The company purchases hogs from a range of producers and markets those animals to packing plants around the country for companies such as Johnsonville Sausage and Bob Evans. The Health Department has stated in its lawsuit, Lynch Livestock Inc. is a part of a vast agricultural conglomerate, owned by Gerald J. Lynch According to court records, the livestock dealer entered into a consent agreement with the U.S. Department of Agriculture in 2017 to cease and desist falsifying purchase records as to weights of hogs it purchased and to halt the practice of creating false scale tickets. Connect with the definitive source for global and local news. The Health Department has stated in its lawsuit, Lynch Livestock Inc. is a part of a vast agricultural conglomerate, owned by Gerald J. Lynch, That corporation's website describes the company as a group of family businesses in Iowa since 1916. During the various sentencing hearings, Judge Williams referred to Lynch Livestocks fraud scheme as a systematic method of cheating and stealing from livestock producers and sellers and noted the nature of the fraud [was] to rip off people little by little, day by day. Lynch Livestock cooperated with the governments criminal investigation and has agreed to various compliance measures as a part of its plea agreement. The case was prosecuted by Assistant United States Attorneys Timothy L. Vavricek and Matthew J. Cole and investigated by the United States Department of Agriculture, Office of Inspector General, and the Federal Bureau of Investigation. On January 13, 2023, Thoms was sentenced to one year of probation. NEW HAMPTON, Iowa A former manager for an influential Iowa-based pork dealer has died in a crash, days after federal prosecutors charged him in a scheme to swindle hog farmers through fraudulent buying practices. There is no parole in the federal system. Emily Andersen Crime and Courts Feb. 6, 2023 3:37 pm84d ago, By Bobby Hansen, - Better Business Bureau Business News Feb. 3, 2023 5:00 am87d ago, Emily Andersen Crime and Courts Oct. 7, 2022 10:55 am206d ago, Emily Andersen Crashes Apr. An accident report released Tuesday gave no indication why his truck left the road. Each barn was to house 2,400 hogs. In a consent order signed this month, the U.S. Department of Agriculture also ordered Lynch Livestock to pay a civil penalty of $445,626, which will be reduced for restitution paid to affected livestock sellers. G. J. L. Farms owns and manages 700,000 head of hogs per year and an additional 60,000 head in non-owned but company managed production sites. Knorr got his first state permit from the Missouri Department of Natural Resources in August 2010 for an operation consisting of four barns. Company charged in livestock fraud investigation. The USDA documents identified Iowa Select Farms, the states largest pork producer, as one of the victims. In the press release, his company said the USDA received a complaint in January that employees at its Waucoma buying station were manipulating the scale and issuing false tickets to artificially lower payments to producers. Aubrey Wulf and her pony, Snow Flame, jump over logs in the clover kid in-hand trail obstacle course on Friday during performance class horse show at the Black Hawk County 4H and FFA Fair in Waterloo. 17, 2023 8:47 am14d ago, State Government May. By Bobby Hansen, - Better Business Bureau. Knorr and his family raise some 500 animal units a year on a farm that's been in the family for 70 years. Lynch Livestock and its managers defrauded livestock producers throughout the Midwest for nearly two decades, said United States Attorney Timothy Duax. The USDA said that its investigation found that from January 2018 through December 2020, Lynch falsified its purchases from sellers by manually manipulating the scale at its Waucoma buying station, causing it to record a lower weight for hogs they delivered. Ulrich placed first in the event and was crowned the Fair Queen earlier in the week. USDA is an equal opportunity provider, employer, and lender, Perishable Agricultural Commodities Act (PACA), Institutional Meat Purchase Specifications, Pilot Project: Unprocessed Fruits & Vegetables, Purchase Programs: Solicitations & Awards, Web-Based Supply Chain Management (WBSCM), For further information about the Packers and Stockyards Act, contact Stuart Frank, Director, Packers and Stockyards Division, Fair Trade Practices Program, at (515) 323-2586, or by email at, Reasonable Accommodation Personal Assistance Services, USDA Issues Complaint to Shane M. Lynch d/b/a Lynch Cattle Company LLC for Alleged Violations of the P&S Act. The company said restitution has already been sent to producers who were underpaid for their hogs. Critics have argued that well-connected companies were given special treatment, while Reynolds has denied that politics were a factor. Notifications from this discussion will be disabled. On July 15, two days after signing the USDA consent order, Gary Lynch filed paperwork with the Iowa Secretary of State to change the companys name to Lynch Family Companies Inc. A superseding indictment was unsealed charging a sow marketing employee with conspiracy to commit wire and mail fraud and conspiracy to defrau. Both worked at the company's headquarters in Waucoma. Under a new settlement with the USDA, the company has paid a civil penalty and restitution of After the pandemic began in April 2020, Lynch Livestock was one of the first Iowa companies that received on-site COVID-19 testing by a strike team deployed by the Reynolds administration. Kim Reynolds and U.S. Sen. Joni Ernst. 12, 2022 7:57 pm415d ago, Erin Murphy, James Q. Lynch State Government Feb. 14, 2022 6:31 pm441d ago, Erin Jordan Environmental News Apr. Lynch Livestock bought swine from livestock producers and sellers at these stations, and the prices Lynch Livestock paid was based on the numbers, classifications, and weights of the swine. 1, 2023 6:23 pm6h ago, State Government May. 28, 2021 4:52 pm, Updated: Jul. We'd love to hear eyewitness Steven "Shooter" Demaray, 70, was the former regional buying manager for Lynch Livestock. The USDA had ordered Lynch Livestock to cease and desist from the same improper buying and weighing practices in October 2017 and to pay a $15,000 fine and restitution to two companies that were the primary targets. Sunny. WAUCOMA A Waucoma-based livestock buyer has been sentenced to probation, restitution and a fine in connection with allegations employees che. If you forget it, you'll be able to recover it using your email address. The companys longtime owner, Gary Lynch, a top booster of Iowa State athletics and political donor to Iowa Republican elected officials, hasnt returned messages seeking comment. Competitors in the trail horse class wait in the warm up ring during a horse show at the 2021 Black Hawk County 4H and FFA Fair in Waterloo. 29, 2023 9:23 am2d ago, Crime and Courts Apr. Sutherland said in a statement the company was extremely disappointed that prosecutors had moved forward with charges. Those practices violate federal law and result in underpayments to producers. So shortly after his second attempt, Knorr created Stone Ridge Pork, a Missouri limited liability company, and secured financing through G.J.L. At that time, Gary Lynch reported the matter to the USDA, requested an audit and cooperated with the investigation. Lynch Livestock cooperated with the governments criminal investigation and has agreed to various compliance measures as a part of its plea agreement. The 2017 case didnt erode Lynchs standing in the industry, philanthropy or politics. Consequently, Lynch Livestock paid livestock producers less than what was owed and violated the 2017 consent decision with the USDA. The USDA has not revoked Lynchs dealer license and praised the company in a press release last week for its cooperation and voluntary corrective actions.
