Grain storage company under state investigation

MILLIKEN – An investigation continues into a Burlington-based company that allegedly mishandled 4 million pounds of pinto beans grown by farmers in the Burlington and Milliken areas.

The missing beans are estimated to be worth about $1 million, according to the Colorado Department of Agriculture, which has been looking into the situation since February.

Department investigators seized records and commodities held by Western Grain International Inc. on March 19. The company has grain storage and distribution facilities in Burlington in Kit Carson County in eastern Colorado and in Milliken in Weld County.

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According to a press release from the CDA, the investigation began when a “routine inspection found the company to be storing less (beans) than their books indicated.” The CDA estimated between 20 and 30 bean growers were affected by the shortage.

Christi Lightcap, CDA director of communications, said she could say little about the investigation even though it has been under way for about three months.

“The (seized) beans have been moved to a different location and a price is being negotiated on those beans,” she said. “Whatever we get will be combined and distributed between the storage customers.”

Grain operators like Western International are paid for holding commodities for farmers after the products are harvested. When the commodity is sold, the grain company cleans and bags the product, receives payment for it and in turn pays the farmer.

Western International’s telephones have been disconnected and no spokesperson was available for comment.

Rol Huddler, publisher of the Burlington Record, said his paper has published “a few” stories on the investigation but said he didn’t know more than was in the CDA press release. Huddler said the business in Burlington, which employed “less than 10” people, has been closed for “quite some time” but could not say exactly how long.

Huddler said his paper is now carrying a legal notice for a public trustee sale of Western International’s real property that, according to the notice, will be sold “on the steps of the Kit Carson County courthouse at 10 a.m. on July 11.”

Foreclosure in Weld County

Ken Lind, an attorney with Lind, Lawrence & Ottenhoff in Windsor, said his firm is handling the foreclosure action against Western International on behalf of the company’s noteholder, Colorado Community Bank of Milliken.

“We’ve declared it to be in default due to the actions by the agriculture commissioner,” Lind said. The July 11 sale is for Western International’s Burlington property only.

Lind said another foreclosure sale has been filed with the Weld County public trustee’s office for Western’s Milliken property but no date for that sale has yet been set.

Sheryl Trent, Milliken town administrator, said the Western International office and warehouse in her town has been closed for some time but, like Huddler, could not say for how long.

Lightcap said she did not know when the CDA investigation might be concluded or when the affected bean growers would receive compensation.

“There’s no way to tell,” she said. “We are trying to make this as timely as possible and we’re going through all the steps necessary.

“Our main goal is to protect the producers and it’s important for us to get it resolved.”

Lightcap said she could not speculate on what penalty Western may be facing. However, one legal observer noted that a civil suit or even criminal charges are possible.