Area Farmer Pleads to Charge of Loan Fraud

CEDAR RAPIDS, Iowa (AP) — A Charles City-area farmer has pleaded guilty to selling more than 90,000 bushels of corn that was pledged as collateral on federal Farm Service Agency loans for more than $196,000.

59-year-old Leroy Jones pleaded guilty Monday in federal court to one count of conversion of property pledged to Farm Service Agency. Jones admitted during the hearing to removing or converting 90,581 bushels of corn that he used to mortgage a loan for $196,327.

Jones also admitted to selling the corn for nearly $333,000 with the intent to defraud the loan agency from Dec. 1, 2014, through Sept. 30, 2015.

Jones faces up to five years in federal prison, plus fines and restitution when he's sentenced..