Clear Lake man sentenced to prison for creating false documents - KXLT - Fox 47 Rochester MN News, Weather, Sports #rochmn

Clear Lake man sentenced to prison for creating false documents in order to get millions of dollars in loans

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CLEAR LAKE, Iowa (FOX 47) -

A Clear Lake man is sentenced to prison for creating false documents in order to get millions of dollars in loans.

According to the US Department of Justice, Michael Royster, 53, of Clear Lake, received a three year prison sentence Thursday. Royster is guilty of creating false documents to convince Farm Credit Services of America to give him and his son loans totaling more than $3.8 million.

In a plea agreement, Royster admitted that, in an effort to get $3.8 million in credit for 2015 farming expenses, he created fake contracts to mislead FCSA into thinking that local cooperatives or other purchasers were storing more of his and his son’s corn and soybeans than what they actually had in storage.  Royster created the fake documents by cutting and pasting additional digits on the actual contracts and then making photocopies of the altered documents.  He admitted, for example, to falsifying a contract showing a cooperative had approximately 20,000 bushels of his corn by adding a 1 to make it appear as though the cooperative instead held 120,000 bushels.  As part of the plea agreement, Royster admitted to creating and using similar fake documents to get loans in 2011, 2012, and 2013.

Royster was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Royster was sentenced to 33 months’ imprisonment, and a special assessment of $100 was imposed.  He was also ordered to make $1,133,821.31 in restitution to FCSA.  He must also serve a term of supervised release after the prison term. 

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