Utah Man Sentenced for Fraudulently Concealing and Transferring Assets in Bankruptcy
BOISE, ID—Farrell Larson, 67, of Meadow, Utah, was sentenced today to five years of probation and 100 hours of community service for fraudulent transfer and concealment of assets in a bankruptcy, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Larson to pay restitution in the amount of $47,000.
According to the plea agreement, Larson was the president and co-owner of Select Onion and Larson Land Company, LLC, which operated an onion farm and onion processing plant in Ontario, Oregon. Larson Land Company merged with Select Onion and filed Chapter 11 bankruptcy in the District of Idaho in 2012, with Larson signing as debtor. On April 19, 2012, the Honorable Terry L. Myers, Chief Bankruptcy Judge for the District of Idaho, held that Larson could not utilize cash collateral of Larson Land Company or Select Onion. In his plea agreement, Larson admitted that on April 20 and 23, 2012, he caused a total of $56,000 in cash to be withdrawn from Select Onion bank accounts. The cash represented assets obtained by Select Onion after the filing of bankruptcy. The withdrawals and subsequent transfer of the money was done without the knowledge or authorization of the bankruptcy court or trustee. In his plea agreement, Larson admitted to knowingly concealing assets from the trustee, his creditors, and the bankruptcy court with the intent to defraud.
The case was investigated by the Special Inspector General for the Troubled Asset Relief Program, the Internal Revenue Service, the Office of Inspector General for the Federal Deposit Insurance Corporation, and the Federal Bureau of Investigation.