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Former director of wheat groups to plead guilty
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By: The Associated Press
| 02/25/2005 |
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Lance Hagen is scheduled to go on trial in April on two felony charges. He is accused of taking money from the North Dakota Grain Growers Association and the U.S. Durum Growers Association.
Hagen was director of both groups until April 2004, when the alleged thefts were discovered. The Grain Growers Association represents wheat and barley farmers, while the Durum Growers represent farmers who raise durum, a wheat variety used to make pasta. Both are based in Bismarck.
Richard Riha, the Burleigh County state's attorney, said an April 4 court hearing has been scheduled for Hagen to change his plea. Riha would not specify which charges Hagen will admit, or what his sentencing recommendation will be.
Hagen faces two charges of misapplication of entrusted property, which refer to the money he was handling for the two organizations. Both carry a maximum punishment of a 10-year prison term and $10,000 fine.
Hagen declined comment Thursday. His attorney, Orell Schmitz of Bismarck, could not be reached for comment. He did not respond to telephone or electronic mail messages.
In an April 2004 interview with auditors, Hagen admitted taking $60,881 from the Grain Growers and $37,367 from the Durum Growers.
The audit, commissioned by the Grain Growers, said the total amount of missing cash was higher -- $112,685. The audit was done by Fraudwise, a unit of Eide Bailly LLP, an accounting and consulting firm based in Fargo.
When interviewed by auditors, Hagen said he had returned some of the money. When he was charged in July 2004, Hagen said he had made full restitution, a statement that was confirmed by spokesmen for both groups.
The criminal complaint against Hagen says the thefts began in December 2002 and ended in March 2004. He told auditors he first took money to speculate on wheat prices in the commodities markets.
In 2002, Hagen told auditors, he turned $3,000 into $311,000. However, his luck turned, and he lost $250,000 the following year, he said.
"Things started going bad, and I never got out of it," Hagen was quoted by auditors as saying. "It just went from bad to worse."
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©Madison Daily Leader 2009
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