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GRAIN ELEVATOR SCHEME EXPOSED: TWO KENTUCKY MEN TO BE SENTENCED IN AUGUST
In a shocking case of corporate betrayal, Gerald Kent Kingston, 61, of Elkton, KY and Bobby Joe Merrick, 72, of Princeton, KY, have pleaded guilty to stealing over $350,000 from a Lyon County, KY grain elevator company.
According to court documents, Kingston, the former manager of Gavilon Grain’s grain elevator in Eddyville, KY, and Merrick, a local farmer, devised a scheme to defraud Gavilon Grain by creating multiple scale tickets for each truck load of crop that Merrick delivered. Between September 19, 2016, and May 5, 2021, Kingston electronically submitted the scale tickets to Gavilon Grain’s headquarters in Nebraska for payment, resulting in Merrick being paid twice for each truck load of crop he delivered.
During court proceedings, Kingston and Merrick admitted that Merrick was paid $354,870.11 for phantom loads of product. After receiving payment from Gavilon Grain, Merrick would make a cash payment to Kingston.
Kingston and Merrick were charged with one count of conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349, and five counts of wire fraud in violation of Title 18, United States Code, Section 1343. As part of the plea agreement, they will be required to pay $354,870.11 in restitution to Gavilon Grain.
Both men are scheduled to be sentenced on August 24, 2022, by U.S. District Judge Thomas B. Russell, who will determine any sentence each receives after considering the U.S. Sentencing Guidelines and other factors.
The Federal Bureau of Investigation conducted the investigation, and the case is being prosecuted by Assistant U.S. Attorney Raymond McGee.
The U.S. Attorney for the Western District of Kentucky, Michael A. Bennett, made the announcement, highlighting the severity of the crime and the importance of holding perpetrators accountable.
Key Facts
- State: Kentucky
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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