Financial scandal brewing in Delta | Arkansas Blog

Saturday, August 16, 2014

Financial scandal brewing in Delta

Posted By on Sat, Aug 16, 2014 at 6:47 AM

screen_shot_2014-08-16_at_6.43.20_am.png

House Speaker Davy Carter
distributed a letter Friday that reflected a report I'd received earlier in the day of a brewing financial scandal in the Delta.

Carter's letter refers to breached contacts between farmers and a commodity broker and said tens of millions could be at issue. He said it could be a subject for future regulatory efforts.

Intriguing, to put it mildly. I'm out of pocket in upstate New York but I can add this scrap of information on what's going on from a reliable source.

The case focuses on a grain broker who'd "book" grain for farmers. They'd accept his promised price and he'd pay them, taking a commission from the sale. But this particular broker may have been running something akin to a Ponzi scheme — or at a minimum unable to cover contract commitments. Losses are said to be as high as $40 million. Losses to individual farmers could be huge. 

Lots more to come on this obviously.


Tags: , , ,


Sign up for the Daily Update email
Favorite

Comments (3)

Showing 1-3 of 3

Add a comment

 
Subscribe to this thread:
Showing 1-3 of 3

Add a comment

More by Max Brantley

Readers also liked…

  • Arkansan on Obama's latest commutation list

    President Obama today announced commutations of the sentences of 111 federal prisoners, including one from Arkansas.
    • Aug 30, 2016
  • Baseball fans have a new place to stay

    If you missed out on Razorback baseball home games this year because you couldn’t find a great place to stay, your problem is now solved: Staybridge Suites of Fayetteville is now fully renovated and located directly across from Baum Stadium, with free parking for hotel guests.
    • May 22, 2017
  • The inspiring Hillary Clinton

    Hillary Clinton's campaign for president illustrates again the double standard applied to women. Some writers get it. They even find the supposedly unlikable Clinton inspiring.
    • Oct 16, 2016

Most Recent Comments

 

© 2018 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation