Attorney General Chris Koster filed charges against an Audrain County grain dealer today for operating what he said was essentially a massive Ponzi scheme.
Koster filed 12 felony charges against Cathy Gieseker of Martinsburg, arguing that she bilked 180 farmers out of nearly $27 million. Koster said Gieseker sold grain for farmers through two companies, promising that she could either obtain a higher rate or that she could sell grain under “a delayed price and deferred payment contract.”
But Koster said in most cases, Gieseker sold the grain at the going rate and did not pay the farmer.
“Cathy Gieseker is charged with a scheme that cheated farmers out of their hard-earned money,” Koster said in a statement. “While we prosecute Ms. Gieseker we will continue to work with the Missouri Department of Agriculture and federal authorities to ensure all assets are seized and every possible dollar is used to compensate farmers she defrauded in this scheme.”
Koster said a news conference in Jefferson City that it may be difficult for those who invested to get their money back.
You can watch videos of the the conference by clicking here.
Tags: audrain county, chris koster, fraud, ponzi schemeCategories: Consumer Interest, Economy, State Politics.
