Missouri couple indicted for $3 million farmer fraud

Thursday, April 21, 2011 | 5:33 p.m. CDT

KANSAS CITY — A federal grand jury in Kansas City has indicted owners of a northwest Missouri grain company for allegedly defrauding farmers out of about $3 million.

Federal prosecutors said Thursday that 66-year-old Daniel Froman and his wife, 65-year-old Pauline Froman, operated a company that stored and bought grain from farmers in northwest Missouri. The indictment accuses the Fromans of selling the farmers' grain without the farmers' permission. Prosecutors also allege the Fromans then wrongfully withheld proceeds from the sales.

The Fromans are also accused of submitting fraudulent financial statements to the state.

Charges against the couple include mail fraud and bank fraud.

Pauline Froman's lawyer said he hadn't seen the indictment yet and could not comment. Daniel Froman's lawyer did not immediately return a call seeking comment.

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