[More from the charging document in the previous case]
“21. It was further part of the scheme that on or about December 13, 2013, defendant Nelson
obtained a farm personal property and liability insurance policy on his cattle through Farm Bureau Insurance in case of livestock drowning, shooting, or theft without disclosing that the FSA had first lien on all of his chattel.
22. It was further part of the scheme that from on or about December 15, 2013 through on or about March 30, 2014, defendant Nelson knowingly and intentionally
made fraudulent statements to Farm Bureau Insurance, by falsely indicating his livestock had drowned or been stolen.
Each time he made a claim, defendant Nelson signed a false sworn statement in a proof of loss. In fact, he had not lost the livestock in the manners claimed, and he was selling numerous cows and calves to various auction houses.
23. It was further part of the scheme that on or about March 29, 2014,
in furtherance of his scheme, defendant Nelson took a vacation to the Kansas City, Missouri, area. He asked his farmhand to check and count the cattle behind his home, and the farmhand counted 34 cows
and 34 calves. Defendant Nelson indicated that was incorrect and it should be much higher.
He came home, purportedly early, and took the farmhand to a wire fence that was cut and pulled it aside. The farmhand saw no evidence of cow movement in the area outside the fence, and he had never seen the number of cattle defendant Nelson claimed behind Nelson’s home.
Defendant Nelson then falsely claimed to Farm Bureau Insurance that he had lost 40 cattle due to theft.
24. It was further part of the scheme that, without disclosing that the FSA had first lien on all of his chattel, defendant Nelson
filed four loss claims to Farm Bureau Insurance, resulting in a loss of $31,320, and the proceeds were not remitted to the FSA as was required under the terms of the loans.
25. It was further part of the scheme that defendant Nelson ceased making repayments on his FSA loans as of January 12, 2015. His outstanding principal balance is $138,452.79, plus applicable interest and penalties.
Defendant Nelson filed for Chapter 7 bankruptcy on June 25, 2015.”
View attachment 195759
So no, he didn’t just “break a rule on a loan.”