Federal government lost nearly $ 600,000 in loan
MADISON, Wisconsin (WKBT) – A former Arcadian man has been sentenced to one year and one day in federal prison for lying about applying for a farm loan. Henry Berg, 42, currently of Geneva, Illinois, was convicted in U.S. district court Thursday.
On May 2, Berg pleaded guilty to knowingly making a false statement in order to influence a farm credit association, Badgerland Financial ACA (now Compeer Financial). The farm loan was $ 650,000, according to a press release.
Berg did not disclose some debts on his 2015 loan application and falsely told the bank that he had obtained crop insurance.
He then defaulted on the loan. Badgerland learned that Berg was not farming that year and had disposed of the collateral he had pledged as part of the loan.
Badgerland also learned that he had sublet his land and sold farming-related items to another farmer. Berg received compensation for the items but did not disclose or hand them over to Badgerland.
Because Berg’s Badgerland loan was partially guaranteed by the Department of Agriculture’s Farm Service Agency, the federal government suffered a loss of $ 596,036.30. Badgerland suffered a loss of $ 53,963.70.
Berg was ordered to pay restitution. He will also benefit from four years of supervised release following his imprisonment.
The investigation that led to the indictment against Berg was conducted by the Office of the Inspector General of the United States Department of Agriculture and the Federal Bureau of Investigation.
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