Thayer farmer to pay $988K in restitution

Joseph Scott Waigand of Thayer was ordered to pay $988,636.25 in restitution to Iowa State Savings Bank (ISSB) Dec. 24 after he was convicted on one count of ongoing criminal conduct Aug. 8.

An order for restitution was filed against Waigand Monday with the Iowa District Court. Waigand, who pleaded guilty Aug. 8, was sentenced to an indeterminate term of 25 years in prison, which was suspended on the condition he be placed on supervised probation and pay restitution to ISSB.

According to court documents, Waigand’s farming operation was on “shaky” ground, and as a result, he actively procured the sale of collateral secured by the bank in ways that would allow him to avoid paying the proceeds to ISSB. He engaged in this deception on many occasions. Additionally, his guilty plea admits no less than $275,000 was diverted.

“This is a case where the defendant (Waigand), knowing already that he was in trouble, nevertheless engaged on a course of action that could have no other effect than to cause more trouble. Here, that trouble was the collapse of the defendant’s farming operation, forcing the bank to liquidate its collateral,” Judge John Lloyd said in his ruling.

Union County Attorney Timothy Kenyon said, despite the bank having an interest in the property, for the most part, the liquidated collateral was Waigand’s property, which may have been a “mitigating circumstance” leading to Waigand receiving probation over prison.

“There are some that may say, ‘how can it be a crime for disposing of his own property?’” said Kenyon.

Kenyon said the answer to this question is because Waigand entered into loan agreements which indicated he would not dispose of property without giving ISSB their interest and collateral, a chance at acquiring it or paying off the proceeds to that collateral first.

According to court documents, Waigand took, destroyed, concealed or disposed of secured property as early as August 2014.

“Most of the time, when you breach that agreement, it’s a breach of contract,” said Kenyon.

Kenyon said this case was “next level” because collateral was disposed of and cash was diverted using third parties – other entities, graineries and co-ops – that led to the fact that, not only did the bank have a loss, they had additional losses because of the disposed collateral.