By Lori Ehde
Rock County has launched its own internal investigation of bribery allegations against Rock County feedlot officer John Burgers.
Burgers, 48, of Hills, was indicted by a federal grand jury Thursday, Sept. 20, on charges that he accepted money from the Pipestone hog operation Global Ventures Inc. to overlook mismanagement of potentially hazardous waste.
Burgers was placed on paid administrative leave Friday pending an investigation of allegations contained in the indictment.
According to County Administrator Kyle Oldre, the internal investigation is necessary to determine if there were any violations of local personnel policy.
Oldre said Worthington Attorney Gordon Moore will serve as independent counsel to ensure an impartial investigation, since Burgers worked so closely with Oldre and County Attorney Don Klosterbuer.
Moore officially received the appointment this week and said his role in the investigation won't be active until he has a chance to see what work is appropriate.
"The federal investigation is ongoing and we're going to be very respectful of that and not get in the way or step on any toes," he said Wednesday.
"We have independent jurisdiction and independent authority, but one of the reasons we're taking a wait-and-see approach is we don't want to re-invent the wheel if it's not necessary."
Violations at the county level would be filed as a civil suit. If state criminal charges are filed, Moore would be in charge of that as well.
Indictment also charges Global Ventures Inc.
Global Ventures is also charged with two counts of offering a bribe to an agent of an organization receiving federal funds.
Allegations in the indictment date back to 1996 when Burgers learned of a potentially hazardous chemical spill being dumped at the Global Ventures hog facility.
Instead of notifying the Minnesota Pollution Control Agency, Burgers advised a Global Ventures senior officer to take care of the problem.
Three months later, according to the indictment, Burgers approached the same senior officer at Global Ventures and said he was in deep financial trouble.
The Global Ventures officer then allegedly arranged for Burgers to meet with a senior officer at First National Bank and Trust in Pipestone.
Over the next year and a half, the bank officer arranged for more than $100,000 in new or consolidated loans for Burgers, even though he had been turned down for a loan at the bank's Luverne branch office.
The indictment also alleges that when Burgers needed to repay one of the loans, the Global Ventures officer arranged for a series of meetings between Burgers and the former senior bank officer, who had since begun working for Global Ventures.
At these meetings, the former bank officer allegedly provided Burgers with a total of $6,000 cash to pay down his loan.
The grand jury further alleged that between March 1996 and April 1999, Burgers repeatedly provided preferential treatment to Global Ventures.
The Sept. 20 indictment includes mail fraud charges against both Burgers and Global Ventures involving a deprivation of honest services.
Burgers declined to comment, and Global Ventures officials issued a statement Sept. 20 saying they were "shocked" to learn of the charges and they "vehemently deny" any wrongdoing.
"Global Ventures is confident that it will be totally vindicated of any charges," they wrote in their statement.
If convicted, Burgers faces a maximum penalty of 10 years in prison and/or a $250,000 fine for soliciting a bribe and up to five years in prison and/or a $250,000 fine for mail fraud.
Global Ventures faces a maximum penalty of up to $500,000 per count.
The case is the result of an investigation by the Federal Bureau of Investigation. FBI agents and other authorities have reportedly been investigating financial arrangements and the hog industry in the Pipestone area for several years.
Anyone with information concerning the possible solicitation or receipt of bribes or kickbacks in Rock or Pipestone counties can call FBI Special Agent Michael Dudley, (507) 387-2460.
U.S. Attorney Hank Shea is prosecuting the case.
Burgers and Global Ventures will make their first appearance in federal court in St. Paul Oct. 5.