Does Gallatin Livestock Auction owe you money?
This website brought to you in part by the following sponsor:
Find out how to advertise here - Email us! [email protected]
Find out how to advertise here - Email us! [email protected]
On March 21 the Department of Agriculture (MDA) announced that Missouri livestock producers and buyers with claims against Gallatin Livestock Auction should contact the department to file a claim. Gallatin Livestock Auction is owned by Daniel Froman.
The Gallatin Livestock Auction bond of $125,000 will be distributed to those owed payment on a pro-rated basis in the event that the value of claims exceeds the bond amount.
Does this sound familiar?
In February 2009, when Froman surrendered his Missouri grain warehouse and grain dealer licenses, the MDA stepped in and accepted over 100 claims from creditors of Gallatin Grain Company. In the end, those farmers received about 12 cents on the dollar.
The case recently concluded in the Western District of Missouri federal court, when Froman was sentenced to six years for mail fraud and ordered to pay restitution of $2.8 million. Sentencing for Froman’s wife Pauline is set for April 17 in federal court.
Since February 2009, while the grain case wound its way through the court system, Froman continued to operate Gallatin Livestock Auction. At his federal sentencing on March 8, Froman claimed that he had paid $100,000 worth of "under the table" restitution by providing customers with free cattle and by taking out and maintaining a life insurance policy in the victims’ names.
Gallatin Livestock Auction continued to operate until Dec. 31, 2011.
In November 2011, the State of Missouri twice attempted to shut down Froman’s sale barn in Daviess County Circuit Court without success. The MDA gave official notice to Froman of its intent to revoke the license for the sale barn.
In the local hearings, the State argued that the sale barn violated Missouri Livestock Marketing Law by failing to pay William Merydith of Perryton, Texas for proceeds from the sale of livestock sold on Sept. 10, 2011. Two other claims had also been filed.
Froman’s attorney said that the Merydith claim and one of the other claims had been satisfied and said the other claim was disputed.
The State presented additional concerns about the sale barn’s solvency at the two Daviess County hearings:
1) A $25,000 judgment against Froman by the Department of Natural Resources still outstanding in another case against the sale barn.
2) Froman’s imminent (at that time) sentencing in federal court for mail fraud in a case where over 100 farmers were defrauded of over $3,000,000.
3) Froman provided false information to the MDA in the past about his grain operation.
4) Froman’s continuing pattern of delaying payment to his debtors, in a game of "musical chairs."
5) Multiple insufficient checks issued by Froman, including one for $141,000 to Merydith.
Judge Thomas Chapman ruled against the State in both hearings, which allowed the business to continue operations.
A Department of Agriculture hearing about the revocation of the livestock auction license for Gallatin Livestock Auction was scheduled for Dec. 2, 2011, then postponed to Jan. 13, 2012. But in the end, the license expired on Dec. 31, 2011 and was not renewed, making the hearing unnecessary.
No additional time for sexual assault and witness tampering
Daniel Froman was transported back to Gallatin on March 22, 2012, and was sentenced for sexual assault and witness tampering in Daviess County Circuit Court by Judge Roger Prokes. The judge said at the hearing that the case had "a life of its own." The charges were originally filed in September 2009, although the incident occurred in January 2009.
Froman made an Alford plea to amended charges of felony sexual assault and misdemeanor attempted tampering with a witness. He received five years in the Missouri Department of Corrections for sexual assault and one year in jail for attempted tampering. Those sentences will run concurrently to each other. They will also run concurrently to his federal sentence of six years, meaning that he will serve no additional time for the local charges.
In an Alford plea, the defendant does not admit that he committed the crimes, but acknowledges that the prosecution likely has evidence that would convince a jury of guilt.
Froman was originally charged with three class C felonies, sexual assault and two counts of tampering with a witness. In the plea agreement, one of the tampering charges was dismissed, and one was amended to a misdemeanor.
The victim of the crime, only identified as A.D.S, was in the courtroom, but chose not to make a statement.
Froman was represented at the hearing by Mike Arnold and Joel Pelofsky.
How to make a claim against Gallatin Livestock Auction
~Notice for Individuals Doing Business with the Former Gallatin Livestock Auction~
~Individuals owed payment may file a claim with the Missouri Dept. of Ag through April 27~
The Missouri Department of Agriculture (MDA) encourages all Missouri livestock producers and buyers who have not received payment for business transactions with Daniel Froman or R&K Real Estate, Inc., d.b.a. Gallatin Livestock Auction to contact the department immediately. The Gallatin, Mo.-based business’ bond funds were transferred to the department following claims on unpaid receipts. The deadline for filing a claim is Fri., April 27, 2012.
"The Missouri Department of Agriculture makes every effort to protect our state’s agriculture industry," said Director of Agriculture Dr. Jon Hagler. "We continue to monitor this situation and all of Missouri’s livestock auctions, and stand ready to assist affected farmers and farm families to the fullest extent."
Livestock producers and buyers who have unpaid transactions and have not yet filed a claim with MDA should call the Department at (573) 751-5617. The Gallatin Livestock Auction bond of $125,000 will be distributed to those owed payment on a pro-rated basis in the event that the value of claims exceeds the bond amount.
The Gallatin Livestock Auction’s Missouri Livestock Market license expired in December 2011. The auction’s former owner, Daniel Froman, is currently serving a six-year sentence in federal prison on criminal charges related to his actions as a principal of Gallatin Grain Company.