Gordon Dale Spronk
Pipestone veterinarian and businessman Gordon Dale Spronk was sentenced to one day imprisonment and three years supervised release for making a false statement to a federally-insured bank.
He was also ordered to pay a $100,000 fine and to complete 300 hours of community service.
During his guilty plea in November, Spronk admitted that he assisted others in making a false statement to the First National Bank of Garretson, S.D., to influence the bank into making a $400,000 loan purportedly to GVI.
The loan was actually being used to purchase a $1.1 million problem loan of a radio broadcasting station in Sioux Falls, S.D., in order to deceive federal regulators.
Under terms of his plea agreement. Spronk, 46, provided $250,000 to the City of Pipestone to purchase a new pumper fire truck and other firefighting equipment; $100,000 in funds to Rock County to purchase and install road signs throughout the County to improve response to 911 calls; $50,000 to Luverne Public School System for the purchase of computers, projectors, and repairs; $50,000 to the Pipestone-Jasper School District for its elementary schools' computer labs; and $25,000 each to the Rock County and Pipestone County SheriffÕs Departments.
John Burgers
John Burgers, a former Rock County official responsible for land management and feedlot inspections, was sentenced to five months in a Sioux Falls, S.D., halfway-house and five months of home detention with electronic monitoring. He was also sentenced to three years supervised release and to serve 300 hours of community service.
Burgers pled guilty in December 2001 to mail fraud involving a deprivation of honest services in relation to his solicitation and receipt of bribes from GVI in exchange for GVI receiving preferential treatment.
Burgers, 48, Hills, admitted that in March 1996, he learned that debris and waste were being dumped by GVI and advised company officials to take care of the problem before he notified state officials.
A short time later, Burgers was in financial trouble and needed money. It was then that Logan arranged for Burgers to meet with Morgan, who arranged for more than $100,000 in preferential loans to Burgers.
When Burgers was asked to repay one of the loans, he met with Morgan, who provided Burgers with more than $5,000 in cash from GVI to pay down the loan.
Ronald B. Willey
and Thomas B. Willey
Pipestone businessmen Ronald B. Willey and his son, Thomas B. Willey, were also sentenced for acting as nominees in a $1 million fraudulent loan.
Ronald Willey, age 56, was sentenced to three years probation with 90 days of home detention. Thomas Willey, age 28, was sentenced to two years probation and ordered to pay a $25,000 fine. Both defendants received reduced sentences based on their cooperation with the government's investigation.
The Willeys owned and operated various Pipestone area businesses including Pipestone Lumber Company, Astro Propane, and Pipestone Rental Properties.
During their guilty plea hearing in February, the Willeys admitted that they allowed a fictitious company, Willey Contract Nursery Services, to be created as a nominee to obtain loans from First National Bank of Pipestone for use by GVI and its principals.
Through this fictitious company, GVI and its principals were able to circumvent federal regulations concerning lending limits and insider loans to obtain a $1 million loan.
Ronald Willey also pled guilty to intentionally failing to file a 1999 federal income tax return. As part of their plea agreements Ronald and Thomas Willey agreed to pay all outstanding tax liabilities, including penalties and interest. At his sentencing Ronald Willey paid $49,440 toward his tax liabilities.
Global Ventures Inc.,
Global Ventures Inc., was placed on probation for two years and ordered to pay a $150,000 fine. GVI was also ordered to pay $100,000 in extraordinary restitution, $50,000 to Pipestone County and $50,000 to Rock County for environmental and regulatory matters.
A representative of GVI pled guilty on behalf of the company in January to mail fraud for engaging in a scheme to obtain preferential treatment from Burgers.
The case is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation.
Assistant U.S. Attorney Hank Shea prosecuted the case. Shea thanked several unheralded Pipestone and Rock County citizens who timely provided helpful information about the defendants' conduct.
He also praised the dedicated, professional efforts of FBI Special Agent Michael Dudley, who spent more than two years working on the complex investigation.