Cedar Rapids, IA – A Northern Iowa man is facing years behind bars after admitting to a brazen scheme to defraud Farm Credit Services of America (FCSA) out of over $3 million. Michael Royster, 52, pled guilty May 9, 2017, in federal court to one count of making False Statements to a Production Credit Association. The case exposes a pattern of deception stretching back years, preying on agricultural lending institutions.
According to the plea agreement, Royster concocted a scheme to inflate the amount of corn and soybeans he and his son ostensibly had in storage. He presented falsified contracts and documents to FCSA in 2015, falsely claiming local cooperatives and purchasers held significantly larger quantities than they actually did. This deception was the core of his attempt to secure over $3 million in credit. But this wasn’t a one-time offense.
Royster admitted to providing similar fake documents to FCSA in both 2012 and 2013. The scheme extended even further back, to 2011, when he allegedly presented fraudulent paperwork to Heartland Bank. The FBI investigation revealed a calculated effort to manipulate lenders, leveraging false pretenses for financial gain. As of this report, the outstanding principal on loans FCSA extended to Royster and his son exceeds $1 million, leaving the institution significantly exposed.
While Royster remains free on bond, his freedom won’t last long if Judge Linda R. Reade has anything to say about it. Sentencing is pending the completion of a presentence report. He now faces a potential maximum sentence of 30 years in federal prison, along with a hefty fine – the greater of twice the gross gain or loss from the offense, or $1 million. A $100 special assessment and five years of supervised release after imprisonment are also on the table.
Assistant United States Attorney Jacob Schunk is prosecuting the case, backed by the full weight of the Federal Bureau of Investigation. The investigation highlights the FBI’s commitment to rooting out financial fraud, particularly within the agricultural sector. Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl, case file number 17-CR-3018.
Grimy Times will continue to follow this case as it moves toward sentencing, providing updates on the fate of Michael Royster and the fallout from his years of deceit. Follow us on Twitter @USAO_NDIA for the latest federal crime news from across the Northern District of Iowa.
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Key Facts
- State: Iowa
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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