A Grand Island man has been sentenced for his role in a complex case of farm loan fraud and bankruptcy, investigators revealed. Daniel Butt, 39, of Grand Island, Nebraska, was sentenced to five years of probation, including eight weekends in jail, for making a false statement on a loan application and bankruptcy fraud.
According to court documents, Butt lied about owning cattle as collateral to obtain two loans from the Farm Services Agency (FSA) between 2016 and 2018. He agreed to use the loan for farming expenses but used the funds for other purposes, including paying off other farming-related debts, car payments, personal expenses, and ATM withdrawals.
Butt also wrote bad checks to the FSA and failed to pay the agency the money he earned from farming as required by the loan terms. He attempted to avoid repayment obligations by selling grain in his father’s and brother’s names and later lied to creditors under oath in bankruptcy court, denying the transactions.
Butt’s actions not only affected the FSA but also individuals he borrowed from, whom he failed to repay. When he filed for bankruptcy, he attempted to discharge the outstanding loan debt to the agency.
The case was investigated by the United States Department of Agriculture, Office of Inspector General. Dax Roberson, Special Agent-in-Charge of the U.S. Department of Agriculture-Office of Inspector General, praised the collaboration between agencies and investigators.
Butt has been ordered to pay $192,758.61 in restitution to the U.S. Department of Agriculture, Farm Service Agency. The case serves as a reminder of the importance of upholding the integrity of government programs and the consequences of those who engage in criminal conduct.
Defendant: Daniel Butt
Criminal Charges: Making a false statement on a loan application and bankruptcy fraud
City and State: Grand Island, Nebraska
Exact Date: July 3, 2024
Sentence or Outcome: Five years of probation, including eight weekends in jail, and $192,758.61 in restitution
Key Facts
- State: Nebraska
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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