Northeast Iowa Family Members Sentenced for Fraudulent Loan Practices
Members of a northeast Iowa family have been sentenced for defrauding a bank and the federal government over “double-pledged” crops in Chickasaw County.
The U.S. Attorney’s Office for the Northern District of Iowa says 53-year-old Aimee Rosenbaum of Lawler, 68-year-old Donald Rosenbaum of Cresco, and 27-year-old Marshal Rosenbaum of Fredericksburg, conspired to illegally obtain over $1.4 million in loans over their 2015 harvest. Court records state Aimee and Donald Rosenbaum farmed land in Chickasaw County and Aimee directed their son, Marshal, to apply for a USDA crop loan in 2015 on the pretense that he would be taking over the farm due to his parents’ health problems.
After Marshal Rosenbaum got more than $165,000 in federal loans and pledged crops to the USDA, prosecutors say Aimee Rosenbaum then received over $1.3 million in loans from a local bank by stating she and Donald would farm the land, pledging the crop to the bank. Officials say the Rosenbaums defaulted on both loans and sold the double-pledged crop with little to no repayment.
Aimee Rosenbaum pleaded guilty to conversion of property pledged to a farm credit agency and bankruptcy fraud. She was sentenced to over six years in federal prison, ordered to pay over $180,000 in restitution and fines and serve a three-year term of supervised release after the prison term.
Donald Rosenbaum pleaded guilty to one count of bankruptcy fraud and was given two years of probation and ordered to pay a $1,000 fine.
Marshal Rosenbaum pleaded guilty to one count of conversion of property pledged to a farm credit agency and was sentenced to three months of imprisonment, plus three months of home confinement and ordered to make over $165,000 in restitution to the USDA, jointly with Aimee Rosenbaum. He must also serve a three-year term of supervised release after the prison term.