Howard Jack Aleff, Conspiracy to Defraud the United States, Iowa 2011

Crime Scene Investigation

A devastating scheme by an Iowa couple has left the USDA reeling, with a staggering civil judgment of $1,376,670 rendered against them for their brazen false claims. Howard ‘Jack’ Aleff and Reena Slominski, a married couple from Knoxville, Iowa, did business as L & J Wool & Fur, a South Dakota corporation, but their business practices were nothing short of deceitful.

Between 2005 and 2011, Aleff and Slominski submitted 132 separate false claims to the USDA’s Farm Services Agency (FSA) in Iowa and South Dakota, presenting bogus documents that appeared to be legitimate business transactions to support their requests for wool loan deficiency payments. But what they failed to disclose was that they owned no sheep, and the claims they made were nothing short of fabricated.

As a result of their deceit, the United States paid them $303,890 to which they were not entitled. The False Claims Act, which prohibits knowingly submitting false claims to the government, has been invoked in this case, and Aleff and Slominski are now facing the consequences of their actions.

In addition to the civil judgment, Aleff and Slominski previously pled guilty to the criminal charge of Conspiracy to Defraud the United States and were sentenced to five years’ probation, fined $60,000, and ordered to pay restitution of $303,890 to the Commodity Credit Corporation.

The United States Attorney’s Office has placed a high priority on criminal and civil enforcement in cases involving all types of fraud committed against the government. The investigation in this case was conducted by the USDA, Office of Inspector General (OIG), and Assistant U.S. Attorneys Thomas Wright and Cheryl Schrempp DuPris prosecuted the criminal and civil cases, respectively.

This case serves as a stark reminder of the devastating consequences of fraud and the importance of accountability. The Grimy Times will continue to follow this story and provide updates as more information becomes available.

Howard ‘Jack’ Aleff and Reena Slominski’s actions may have seemed lucrative at first, but in the end, they have left them with a hefty price tag – and a stain on their reputation that will be difficult to erase.

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