A Sigourney man was sentenced to 33 months in federal prison last week after pleading guilty to mail fraud and conspiracy to defraud the United States.
According to court documents, 48-year-old Mark Lynn Haines sold grain he claimed to be organic. Haines used treated seed, however, which is a violation of the National Organic Program (NOP). He then sold the grain to multiple purchasers at a total sale price of $6.5 million.
Haines also conspired to impede and obstruct the IRS in the assessment and collection of income taxes. Between April 2017 and April 2019, he obtained false invoices, backdated checks, and exchanged checks to give the appearance of an expense that was not incurred. Haines concealed more than $1.3 million.
Haines had previously had his organic certificate revoked in 2018 due to several NOP violations. Following his sentence, he must serve a two-year term of supervised release. Haines must also pay restitution to the IRS and a purchaser of the crops in a total amount of more than $430,000. There is no parole in the federal system.