Clear Lake man sentenced for federal fraud

Admits to using fake documents to obtain millions in ag loans.

Posted: Dec. 22, 2017 9:12 AM

CEDAR RAPIDS, Iowa – A Clear Lake man is going to federal prison for fraud.

The U.S. Attorney’s Office for the Northern District of Iowa says 53-year-old Michael Royster created false documents to convince Farm Credit Services of America (FCSA) to give him and his son more than $3.8 million in loans. Royster pleaded guilty to using fake contracts to mislead FCSA into thinking local cooperatives or other buyers were storing more of his and his son’s corn and soybeans than they actually were.

Royster confessed to curing a pasting additional digits onto the actual contracts, then making copies of the altered document. For example, adding a 1 to make 20,000 bushels of corn look like 120,000 bushels. Royster admitted to creating and using such fake documents to get loans in 2011, 2012, and 2013.

He has been sentenced to two years and nine months in prison and must pay $1,133,821.31 in restitution to FCSA.

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