Federal and state authorities raided Boersen Farms LLC on Wednesday, Michigan Farm News has learned.
Henry Pletscher, public information officer for IRS-Criminal Investigation (Detroit field office), confirmed the raid. He said the office investigates all types of financial fraud.
According to a source who asked to remain anonymous, the Boersens are being investigated for financial fraud.
“I still have property owners who are not whole,” the source told Michigan Farm News. “People are still hurting because of the lack of payment from the Boersens.”
Michigan State Police declined to comment on the investigation.
Requests for comment from Ronald Vander Veen, attorney for Stacy and Nicholas Boersen, were not returned before press time.
According to court documents, the Zeeland-based Boersens once farmed about 100,000 acres, making them one of the largest farming operations in the Midwest.
However, beginning in 2013, court records show the Boersens over-expanded their operations and entered transactions it couldn’t support. To manage growth, the family transferred the business to multiple farming entities, including Boersen Farms Inc., Boersen Farms Properties LLC, and Boersen Farms AG LLC.
When the Boersens endured a poor crop in 2016, they fell “behind on its financial obligations,” according to court documents.
The operation has faced multiple lawsuits for defaulting on obligations to creditors since then, including a 2017 lawsuit by CHS Capital for $145 million; Monsanto Co. for $2.3 million worth of corn and soybean seeds; and Utah-based TFG Financial Group for $19.5 million in unpaid equipment leases.
In 2018 Helena Agri-Enterprises LLC sued various Boersen entities, including Great Lakes Grain LLC I, II, III and IV for $14.9 million in unpaid debts.
In February 2021, Helena lost an appeal in their attempt to claim damages from newly created entities by Stacy Boersen, known as New Heights Farm I LLC, and New Heights Farm II LLC, formed by Nick Boersen.
News of the Boersen investigation comes just months after fellow West Michigan farmer Mike Stamp’s sentencing of 8 years in prison for bank and crop insurance fraud.
Previously, Stamp mentioned to the U.S. District Court “the idea of meeting with the government and sharing information he has that could lead to prosecution of what may be one of the largest farm-fraud cases to arise in Michigan.”
The anonymous source confirmed that Stamp is referencing the Boersens.
