By TIM ALEXANDER
Illinois Correspondent

SPRINGFIELD, Ill. — More than two years after his grain elevator business licenses were permanently revoked by an administrative law judge, an Illinois man has been charged by the state attorney general’s office for 12 violations of the Illinois Grain Code, as well as an additional charge of burglary.

John Kniepmann, 46, of Breese once operated four grain elevators in Carlyle, Bartelso, Germantown and Sandoval as owner and president of The Grain Exchange, LLC and Consolidated Exchange, Inc. He knowingly engaged in activities to defraud and withhold information from the Illinois Department of Agriculture (IDOA) over an 11-month period in 2007 and 2008, according to charges filed by Illinois Attorney General Lisa Madigan on Sept. 10.

Clinton County Circuit Court Judge Dennis Meddendorff subsequently issued a warrant for Kniepmann’s arrest, which required a $50,000 bond.

“These charges are a direct result of (the IDOA) and the Illinois attorney general office’s investigation of the demise of The Grain Exchange, LLC.,“ Stuart Selinger, bureau chief for the IDOA’s Bureau of Warehouses, said. “(Kniepmann) has not been found guilty of any charges at this point. He will get his day in court, The case will work its way through the court system.”

According to the charges filed by Madigan, Kniepmann allegedly submitted false, inaccurate or misleading reports to the IDOA with respect to a series of notes payable to the First State Bank of Eldorado, valued at more than $4 million.

In addition, he is accused of withholding records showing that some 10,000 bushels of wheat were received in March 2007, and another 5,000 bushels the following August, by using the name of his stepdaughter. These violations are Class 2 felonies punishable by a sentence of three to seven years in prison.

The burglary count, also a Class 2 felony, is related to Kniepmann allegedly entering a bank employee’s vehicle while it was parked at the Carlyle elevator and removing a bank document.

“Many farmers have been experiencing financial hardships over the past few years,” said Madigan, in a statement issued by her office. “These alleged acts by Mr. Kniepmann put them in an even more precarious position.”

An amount of $2.1 million was paid to 100 claimants who were owed money for grain stored or sold at Kniepmann’s elevators, through the state’s Grain Insurance Fund. A sale of the company’s assets raised nearly $1.2 million, helping to offset the draw on Illinois’ Grain Indemnity Trust Account.

Selinger said Kniepmann is next due in court in Clinton County on Oct. 14 for a preliminary hearing.