Ex-Grain Elevator Manager Sentenced For $5M Fraud Scheme

MINNEAPOLIS (WCCO) – A Minnesota man who authorities say used his position to steal millions from Ashby Farmers' Cooperative Elevator Company has been sentenced to eight years in prison.

Jerome Robert Hennessey, 56, of Dalton, pleaded guilty in February and was sentenced Friday in Fergus Falls.

"As a manager, Hennessey held a position of trust over the Co-op's members and their financial interests. Unfortunately, he chose to violate that trust by committing an egregious fraud, stealing from his own colleagues, friends, and neighbors," U.S. Attorney Erica MacDonald said.

According to court documents, Hennessey began using his position as general manager of the co-op to steal millions from the company, writing hundreds of checks to himself and to third parties for home and cabin renovations, furniture, jewelry, ATVs, credit card balances and hunting trips – among other things.

To ensure the co-op had sufficient funds to cover expenses and the millions Hennessey stole, authorities say he obtained a line of credit for more than $7 million. In total, Hennessey stole approximately $5,338,922.21.

As stated in the guilty plea and court documents, Hennessey tried to disguise the payments by writing descriptions on carbon copies of the checks to indicate they were for purchases of corn, soybeans and other legitimate expenses. He then gave the carbon copies to the co-op's bookkeeper.

Hennessey was also ordered to pay $5 million in restitution to the co-op.