By Lori Ehde
A representative of the Pipestone hog operation Global Ventures Inc. appeared in U.S. District Court Tuesday on behalf of the company to plead guilty to one count of mail fraud.
In doing so, the company admits to engaging in a scheme to receive preferential treatment from former Rock County feedlot officer John Burgers.
Burgers pleaded guilty on Dec. 19 to the same mail fraud charge stemming from his solicitation and receipt of bribes from GVI officers Dave Logan and Michael Morgan.
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 Logan and advised him to take care of the problem before he contacted state officials.
A few months later, in June 1996, Burgers approached Logan 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."
Burgers' employment with Rock County was terminated in December.
Global decided to enter the plea after being advised by its attorney that the company was legally responsible for the acts of former company officials.
"The individuals responsible for this action are no longer involved with Global," Global president Bob Taubert said in a statement released Tuesday.
"It is important for Global, its customers, suppliers and employees that we put this matter behind us and move on with our business."
Under the terms of the plea agreement, Global agrees to pay $250,000 in fines and donations to Pipestone and Rock counties for environmental protection.
The agreement also states, among other things, that Logan "will have no role in the future of Global Ventures."
All other charges against Global Ventures have been dropped. The actual settlement will be determined by Judge Michael David, based on federal sentencing guidelines.
"We sincerely apologize for the conduct of these two former company officials," Taubert said.
Global Ventures named a new management team in September. In addition to Taubert who's been employed there since 1996, Jerry Bauman, a founding shareholder in 1993, was named vice president and Steve Perkins, a Global owner since 1997, became secretary/treasurer.
The company employs 65 people and raises roughly 175,000 pigs a year, marketing an additional 550,000 hogs for area farmers.