A Missouri man has admitted to his role in a massive organic grain fraud scheme that flooded the market with nearly $140 million in falsely labeled crops. John Burton, 52, of Clarksdale, Missouri, pled guilty today in federal court in Cedar Rapids to one count of conspiracy to commit wire fraud, becoming the fifth defendant to fall in the sprawling federal investigation.
Burton admitted in court that he knowingly sold conventional grain as certified organic, deceiving buyers across the supply chain. He further confessed that unapproved pesticides and fertilizers were used on fields registered as organic—a direct violation of USDA standards. The fraud allowed conspirators to command premium prices, exploiting consumer demand for ethically grown food.
The case centers on Randy Constant, 61, of Chillicothe, Missouri, who pled guilty on December 20, 2018, to orchestrating the scheme through his Iowa-based brokerage, Jericho Solutions, operating out of Ossian. Constant facilitated at least $142 million in grain sales, most of which were fraudulent. His operation relied on a network of farmers willing to lie about their farming practices.
Three Nebraska farmers—Tom Brennan, 70; James Brennan, 40; and Mike Potter, 41—all from Overton—have also pled guilty to their roles in the fraud. They knowingly sold non-organic grain as certified organic, further inflating the scale of deception. Their sentencing, along with Constant’s, is set for August 16, 2019, before U.S. District Judge C.J. Williams in Cedar Rapids.
Burton’s sentencing will be scheduled after a presentence report is completed. He remains free on bond but faces up to 5 years in prison, a fine of at least $250,000, and 3 years of supervised release if sentenced to incarceration. The charges reflect the DOJ’s escalating crackdown on agricultural fraud that undermines both market integrity and public trust.
The investigation was led by the USDA’s Office of Inspector General and the Federal Bureau of Investigation. Prosecution was handled by Assistant U.S. Attorneys Jake Schunk and Anthony Morfitt. Court records, including case files 19-CR-2025 (Burton), 18-CR-2034 (Constant), 18-CR-2058 (T. Brennan), 18-CR-2059 (J. Brennan), and 18-CR-2060 (Potter), are available via the Northern District of Iowa’s electronic filing system. Follow updates at @USAO_NDIA.
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Key Facts
- State: Iowa
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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