Georgia company allegedly bought sunflowers many times in South Dakota without a license

Capitol News Bureau
KELO Pierre Capital Generic

PIERRE, S.D. (KELO) — Staff for the South Dakota Public Utilities Commission claim that a Georgia company illegally purchased more than 100 truckloads of sunflowers in South Dakota since 2014.

Engelman Commercial Group, doing business as BC Trading Corporation, is accused of buying grain without a South Dakota license.

Commission attorney Amanda Reiss filed the complaint Tuesday. She asked the commission to impose the maximum $20,000 fine that state law allows.

She also wants an injunction from a state circuit judge to stop the Atlanta-based company from making further purchases in South Dakota.

The company faces a January 27 deadline to respond.

The complaint includes affidavits from two state Grain Warehouse Division officials.

Paul Kenefick-Aschoff, an inspector and administrator for the division, said he documented on October 15 that BC Trading had purchased 23 truckloads of sunflowers in South Dakota, from February 15 through October 15, without a state license. He said the loads were shipped to another entity.

On December 19, Kenefick-Aschoff determined BC Trading had purchased at least 111 truckloads of grain in South Dakota starting in 2014 through October 15.

Division manager Cody Chambliss said he left a telephone message October 17 for owner Carl Engelman about the need for a South Dakota license and they spoke by phone October 28.

Chambliss said he received an incomplete application and bond by email from Engleman on December 13, followed by various financial documents December 20 and a completed application for a Class B license December 31.

Chambliss determined BC Trading didn’t meet the requirements for a Class B license. A Class B license limits a buyer to purchasing no more than $5 million of grain in a year and prohibits a buyer from entering voluntary credit sale contracts.

Class A license holders also must submit more financial records.

The commission last year levied a $15,000 fine against High Country Mercantile of Cody, Wyoming, for purchasing grain in South Dakota without a license.

You can look here for actions other years by the commission regarding grain warehouses and grain buyers.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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