Bradenton Man Arrested In Fraudulent South Dakota Seed Scheme

SOUTH DAKOTA — A Bradenton man has been indicted in a federal court in South Dakota for a fraudulent organic seed scheme through a business he operated there, the Department of Justice said in a news release.

Kent Duane Anderson, 49, faces one count of conspiracy to commit wire fraud, 12 counts of wire fraud and 29 counts of money laundering, the DOJ said. He was indicted Feb. 4 and pleaded guilty when he appeared before a federal judge Feb. 14.

Anderson, with help from others, operated a group of inter-related businesses he formed in South Dakota that claimed to sell organic commodities between 2012 and 2017, according to the indictment. He operated under the name Green Leaf Trading and other businesses with Green Leaf in the name.

He purchased thousands of tons of small grain and seed products from non-organic suppliers. Claiming they were organic, he resold them to wholesale distributors, brokers, and other buyers at mark-up prices, the DOJ said.

“Falsely labeling products as organic violates federal law,” U.S. Attorney Ron Parsons said. “It cheats American consumers and unfairly punishes true organic farmers and producers who follow the rules. We will prosecute this kind of fraud wherever it is found.”

Anthony Mohatt, special agent-in-charge at the United States Department of Agriculture’s office of inspector general, said, “This investigation and prosecution should send a strong zero-tolerance message to those individuals engaged in the practice of defrauding the National Organic Program. It should also serve as a warning to all that participate in the organic supply chain, that fraud will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney's Office, and all its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from taxpayer funded programs.”

Anderson faces up to 20 years in federal prison and/or a $250,000 fine, as well as three years of supervised release and up to $4,200 to the Federal Crime Victims Fund.