IA Equipment Dealer Gets 12 Year Prison Sentence For Fraud

Farm Equipment reports that a former Iowa implement dealer has been sentenced to more than 12 years in federal prison on charges of mail fraud in connection with a financing scheme that authorities said bilked banks and farmers out of more than $7 million.

Leon Walterman’s company, Walterman Implement, was forced into bankruptcy when the plot came to light. Authorities said Walterman’s company double financed farm equipment purchases and submitted false contracts to lenders. Walterman and his co-schemers maintained a false set of books, fabricated deposit slips and bank statements, moved equipment, switched serial numbers on and otherwise disguised and altered equipment to conceal the scheme from the lenders. The dealership filed for bankruptcy in October 2005.

Officials said the scheme resulted in losses between $7 to $20 million.

The court ordered more than $10 million in restitution to be paid by Walterman and two other employees, who will be sentenced in March. ◆