CEDAR RAPIDS, Iowa – A Howard County farmer is going to federal prison for cheating the U.S. Department of Agriculture (USDA).
David Pitz, 36 from Elma, pleaded guilty in April to one count of conversion of property pledged to a farm credit agency. Pitz confessed as part of his plea agreement to getting a $125,000 guaranteed line of credit from the USDA to help get a loan from a local bank. Pitz was required to use any farm-related income to repay that loan. Instead, he admits using $117,020.68 in crop sale proceeds for personal expenses.
Federal officials say after interest and other fees, Pitz owed the bank and the USDA over $177,000.
Pitz is sentenced to 10 months behind bars, followed by three years of supervised release, and must pay restitution.
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