South Dakota businessman sentenced to federal prison in organics fraud

Published: Feb. 22, 2021 at 6:25 PM CST
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SIOUX FALLS, S.D. (Dakota News Now) - A Florida man has been sentenced to federal prison for selling fake organic grains and seeds for profit through businesses he formed in South Dakota.

Court documents say Kent Duane Anderson sold non-organic grain and seed products as organic from Oct. 2012 to Dec. 2017, making a $25 million profit. According to the documents, Anderson operated a business called Green Leaf Resources that marketed organic grains and seeds. Anderson would buy the non-organic grains and seeds from suppliers in Illinois and Minnesota, store them in North Dakota, and replace the legal documentation. Anderson would then resell the grains and seeds as “certified organic” for a profit.

Prosecutors say Anderson transferred nearly $11 million from the fraudulent sales over five years into his personal accounts. He purchased a $2.5 million home in Florida, an $8 million yacht, and $400,000 in jewelry, according to court documents.

On Monday, Anderson was sentenced to four years in federal prison. Anderson pleaded guilty to wire fraud and money laundering charges.

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