Updated: Aug 12, 2011 04:45 AM

http://www.kwqc.com/Global/story.asp?S=15252455

A Bureau county farmer pleaded guilty this week to charges of money laundering and bankruptcy fraud. Court documents show that in December of 2008, 40-year-old David L. Duckworth of Buda, Ill. received a $1.1 million line of credit to be used toward the 2009 crop year.

According to the U.S. Attorney's Office, as collateral, Duckworth pledged stored grain from the 2008 crop year and future grain from the 2009. However, unbeknownst to the bank, Duckworth was selling corn in nominee names, including Lighthouse Farms, Midwest Farms and others, thereby avoiding the bank's liens.

Later, Duckworth told the bank that it had been a bad year and he needed to further extend the note. When the bank contacted the elevator to verify the amount of grain in storage, the bank learned that the entire 2009 inventory had been sold. Officials say Duckworth defrauded the Bank of Toulon of approximately $2 million.

Duckworth is also accused of lying about money he had hidden in another account during the bankruptcy case.

The penalty for money laundering is up to 10 years in prison and a fine of up to $250,000. The offense of bankruptcy fraud carries a maximum penalty of five years in prison and a fine of up to $250,000. Sentencing is set for Dec. 12.