By Lori Ehde
Rock County Land Management Director John Burgers, Hills, pled guilty Wednesday in U.S. District Court to one count of mail fraud.
In doing so, the court dismissed the more serious charge of bribery.
By pleading guilty to mail fraud, Burgers admits that he engaged in a scheme to defraud citizens of Rock County by obtaining funds and loans in connection with a hog production facility in exchange for preferential treatment.
Burgers has been on paid administrative leave since the Sept. 20 indictment. When asked about the future of Burgers' employment in Rock County, personnel director Kyle Oldre said the matter will be discussed in a closed session during the Dec. 26 County Board meeting.
Burgers admitted in court that in March 1996 he learned that debris and waste were being dumped at a hog production facility owned by Global Ventures Inc.
Instead of notifying the Minnesota Pollution Control Agency, Burgers contacted a senior officer of GVI and advised him to take care of the problem before he contacted state officials.
A few months later, in June 1996, Burgers approached the same GVI officer and informed him he (Burgers) was in deep financial trouble and needed money.
"I heard rumors the bank and Global Ventures were involved in suspicious money transactions. I knew Dave Logan would see me as something of value and that he would know that I could make it tough or make it easy on Global Ventures," Burgers said in a written statement Sept. 18.
"I expected for that reason Logan could help me get loans at Pipestone Bank," Burgers wrote. Dave Logan used me as his heads-up guy to tell him of potential problems."
In those handwritten statements, Burgers said he received roughly $200,000 in loans from Global Ventures.
During his guilty plea hearing Wednesday, Burgers told the court he received numerous bank account statements through U.S. mail that enabled him to monitor his financial situation and alert him when he would need to obtain additional preferential loans.
Burgers admitted that between March 1996 and April 1999 he repeatedly provided preferential treatment to Global Ventures, abusing his position of public trust.
In a Sept. 20 indictment, both Burgers and Global Ventures were charged with bribery and mail fraud and both entered not guilty pleas in October.
In exchange for BurgersÕ guilty plea to mail fraud Wednesday and his full cooperation in the payment of restitution or fines, the bribery charge is dropped.
In lieu of forfeiture of his assets by the court, Burgers also agrees that, by no later than sentencing, he will sell or surrender the boat, motor and trailer that he obtained with the December 1996 preferential loan from First National Bank, Pipestone, so that these assets may be applied to restitution or fines.
He faces a sentencing guideline range between six to 12 months and 24 to 30 months. His fine range is from $3,000 to $50,000.
A sentencing date is expected in eight to 10 weeks.
The case is the result of an ongoing investigation in Pipestone and Rock counties by the Federal Bureau of Investigation. Assistant U.S. Attorney Hank Shea prosecuted the case.
