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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