Stephanie Jane Hauge - Page 17

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          conveyed certain assets and used OMCC’s ongoing business                    
          operations to conceal Bob’s and Byron’s interests in OMCC.  The             
          Government filed a second amended complaint requesting that the             
          District Court enter a judgment against petitioner and OMCC,                
          jointly and severally, for all of the farm loan debt.                       
               The Government claimed that petitioner was conspiring with             
          Bob and Byron to use OMCC’s farming operations to hide assets               
          that otherwise would have been available to the Government to               
          offset Cook Farms’s delinquent farm loans.  The Government                  
          challenged petitioner’s title to real estate that she had                   
          acquired with her distributive share of OMCC’s earnings.  In                
          addition, the Government viewed OMCC’s assets as potential                  
          sources to repay the farm loans.                                            
               The settlement agreement that ended the farm loan litigation           
          reveals that OMCC’s interests were taken into account when that             
          action was settled.  In particular, the settlement agreement                
          stated that OMCC and the Government released each other from all            
          civil claims related to the subject of the action and that the              
          Government would release claims for suspension or debarment by              
          the Agriculture Department against the defendants and OMCC.  The            
          settlement agreement also stated that the settlement payment was            
          intended solely to buy peaceful continued business operation for            
          petitioner and to avoid further litigation.                                 







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Last modified: May 25, 2011