Kent Duane Anderson, Organic Fraud Scheme, South Dakota 2020

Kent Duane Anderson, a 49-year-old man from Bradenton, Florida, has been indicted by a federal grand jury for his alleged involvement in an organic fraud scheme.

According to the indictment, Anderson operated a group of inter-related business entities in South Dakota that claimed to sell organic commodities. However, he allegedly purchased thousands of tons of small grain and seed products from non-organic suppliers and re-sold those products to wholesale distributors, brokers, and other buyers at marked-up prices, falsely representing them as organic.

The indictment alleges one count of conspiracy to commit wire fraud, 12 counts of wire fraud, 12 counts of using the proceeds of the wire fraud to promote the unlawful activity, and 29 counts of money laundering. If convicted, Anderson faces up to 20 years in federal prison, a fine of $250,000, 3 years of supervised release, and up to $4,200 to the Federal Crime Victims Fund.

Anderson pled not guilty to the indictment on February 14, 2020, and was released on bond pending trial. A trial date has not been set.

U.S. Attorney Ron Parsons stated, 'Falsely labeling products as organic violates federal law. It cheats American consumers and unfairly punishes true organic farmers and producers who follow the rules. We will prosecute this kind of fraud wherever it is found.'

The investigation into Anderson's alleged scheme was conducted by the U.S. Department of Agriculture, the Federal Bureau of Investigation, and the Internal Revenue Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.

Anderson is presumed innocent until and unless proven guilty.

Source: https://www.justice.gov/usao-sd/pr/florida-man-charged-organic-fraud-scheme