Agriculture

IRS attacks Michigan-based Boersen Farms – DTN – AgFax

The IRS executed a federal search warrant on June 9 at Boersen Farms, based in Zeeland, Michigan, in connection with an investigation by a Detroit-based Special Agent IRS in question. Henry pressure Confirmed by DTN on Monday.

As of Monday morning, he had not been charged against Boersen Farms. The IRS usually enforces search warrants in connection with alleged financial crimes that may include tax evasion. Pletscher did not reveal the reason for the attack.

Booßen lawyer Ronald J. Vandervine He told DTN:Nicholas Booßen And Stacy Booßen They comply with all legal requirements and believe they have not committed any financial fraud against anyone. “

Stacy Boersen is the wife of the owner of Boersen Farms. Dennis Booßen.. Nicholas Boersen is the son of a couple listed on behalf of New Heights Farms 1 and 2, one of the other two limited liability company farms owned by the Boersen family. Stacy Boersen is listed as an agent on one of these farms.

Boersen Farms has long faced proceedings from companies that provided products and services to farms that once operated approximately 83,000 acres. These proceedings were filed to force Boersen Farms to pay the company money to pay.

Helena Agri-Enterprises, one of Boersen Farms’ creditors, has sentenced Boersen’s New Heights Farm entity and Nicholas and Stacy Boersen to approximately $ 15 million.

In February 2021, the Sixth Circuit Court of Appeals in Cincinnati, Ohio, ruled that Helena Agri-Enterprises could not track other family-owned entities and collect judgments. Here..

“When they were unable to pay their debt, Helena sued the other Bosen family and their newly established company, and these new forms of business should not be respected and to avoid debt. He claimed it was fraudulently designed, “said the Court of Appeals for the Sixth Circuit.

“Helena did not provide a legitimate explanation to downplay the corporate form, so we confirm that the district court has given the defendant summary judgment.”

In March 2021, the US District Court in the Western District of Michigan temporarily lifted a detention order against Boersen Farms, which bans the sale of farm assets. Boersen Farms was recently forced to sell three lands to repay creditors.

Boersen Farms was CHS Capital Inc in 2017. Was sued for defaulting on a $ 145.3 million loan.

Boersen Farms purchased most of its assets from the now obsolete Stamp Farms LLC. The owner of the stamp farm, Michael Stamp, was sentenced to imprisonment on charges related to the bankruptcy of his farm. Stamp Farms, based in Decatur, Michigan, filed for Chapter 11 Bankruptcy Protection in November 2012.

Boersen Farms suffered financial difficulties when corn prices fell from $ 6 and $ 7 when purchasing stamp assets to less than $ 4 per bushel.

According to the CHS proceedings, Boersen Farms received a $ 145.3 million loan default and termination notice on August 14, 2017.

The CHS proceedings leveled many allegations against Boersen Farms, stating that “CHS Capital was fraudulently and intentionally misrepresented the amount of harvested 20l6 grain available for sale, and the amount and expected consequences. Sales revenue was included in the budget. “

In October 2017, LT Capital LLC agreed to assume CHS’s debt and sought to dismiss CHS’s proceedings against the farm.

The farm has also been sued by equipment companies and others.

In November 2017, the Utah Federal District Court ruled $ 16.2 million in favor of equipment company TFG-Michigan. TFG has filed a proceeding alleging that it has not been paid for more than 120 center pivots leased by Boersen Farms.

In a US District Court in the Kansas district, Boersen Farms was sued for breach of contract related to the pursuit of finding someone to acquire CHS debt.

Read more about DTN coverage here:

  • “Michigan farms get new debt” Here
  • “Corn slump hurt farm giants” Here
  • “Michigan Farm is considering options.” Here
  • “Default for seed contract MI farm” Here

Todd Neely can be reached at todd.neeley@dtn.com

Follow him on Twitter @DT Neeley

https://agfax.com/2021/06/16/irs-raids-michigan-based-boersen-farms-dtn/ IRS attacks Michigan-based Boersen Farms – DTN – AgFax

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