Iowa Farmer Sentenced for Grain Fraud

DES MOINES, IA – Donald Lynn Embree, 55, of Waukee, Iowa, is headed to federal prison after being sentenced to 15 months for systematically lying to secure agricultural loans. United States District Court Judge Rebecca Goodgame Ebinger handed down the sentence on January 20, 2017, following a guilty plea entered by Embree on September 22, 2016. The case, announced by United States Attorney Kevin E. VanderSchel, exposes a brazen attempt to exploit a program designed to support American farmers.

Embree wasn’t stealing from other farmers, he was stealing from taxpayers. The scheme revolved around three loans obtained from the Commodity Credit Corporation (CCC) in March of 2015. The CCC, an agency within the United States Department of Agriculture (USDA), provides critical financial backing to the agricultural sector, administered locally by the Farm Service Agency (FSA). Embree pledged bushels of corn and soybeans as collateral, a standard practice – except the collateral didn’t exist as claimed.

According to court documents, Embree falsely certified that the grain was both present and under his control, stored securely on his property. He swore the quantity pledged was accurate and eligible for the loans. The reality? Embree had already sold the majority of the grain *before* applying for the loans, leaving him with no legitimate collateral to offer the CCC. It was a calculated deception designed to line his pockets at the expense of the government.

The total amount of restitution ordered is a staggering $321,927.13, payable to the USDA Farm Service Agency. Embree will also be required to pay $300 to the Crime Victims’ Fund. Beyond the prison sentence, he faces three years of supervised release upon completion of his term, a constant reminder of his criminal actions.

The investigation was a joint effort by the United States Department of Agriculture Office of Inspector General, who initially flagged the discrepancies, and the United States Attorney’s Office for the Southern District of Iowa, which successfully prosecuted the case. This isn’t just about money; it’s about upholding the integrity of vital agricultural programs.

Embree’s actions demonstrate a callous disregard for the law and a willingness to exploit a system meant to support hardworking farmers. Those with information regarding similar fraudulent activity are encouraged to contact the USDA Office of Inspector General. For media inquiries, Rachel Scherle can be reached at 515-473-9300 or Rachel.Scherle@usdoj.gov.