Former grain dealer pleads not guilty in fraud case

WARRENTON — A former Missouri grain dealer has pleaded not guilty to 12 state charges in a $27 million grain fraud case.

KXEO Radio reports that Cathy Gieseker entered the plea Tuesday. She was arrested in July and accused of bilking more than 180 farmers while she ran a Martinsburg company that sold and hauled grain.

Prosecutors have called it the largest grain fraud scheme in Missouri history.

Gieseker also faces three federal charges. Her federal trial begins Dec. 7 in St. Louis.

Prosecutors say Gieseker promised farmers returns 50 percent to 100 percent above market through nonexistent contracts with Archer Daniels Midland Co. The indictment alleges she instead sold grain at spot prices and used proceeds from other grain sales to pay inflated prices to some farmers.