PIERRE, S.D. (AP) —A circuit judge in Beadle County, South Dakota, sentenced the co-owners of H&I Grain to five years in the state penitentiary for fraud in grain marketing. The sentencing came four years after a multimillion dollar grain marketing scam and a cover-up caused missions of dollars in losses to farmers in eastern South Dakota.
Jared Steffensen and his wife, Tami Steffensen, Arlington, SD, pleaded guilty earlier to theft by deception and were sentenced Sept. 17 to five years in prison. Jared Steffensen’s mother, JoAnn Steffensen, pleaded guilty to failing to inform state regulators that the company was failing financially. She received a two-year suspended prison sentence and must serve 120 days in jail, plus pay a $2,000 fine and $104 in court costs.
Documents relating to various lawsuits in H&I bankruptcy indicate a total loss of $15.3 million — with farmers owed around $8 million and Great Western Bank owed $7 million to $8 million.
Even though the Steffensens knew that their business was insolvent, they continued to reassure farmers they were fine, took their grain, and did not notify state regulators as required by law.
Duane Steffensen, who started the company, was facing charges as well, but died in January of 2019.
