PIERRE, S.D. (KELO) — Jeremey Frost of Onida has agreed his company should pay a $20,000 civil penalty to the South Dakota Public Utilities Commission because he and Fearless Grain Marketing bought grain without the required state license.
PUC staff attorney Amanda Reiss and defense attorney Robert Konrad signed a settlement agreement. The three-member commission will decide Tuesday whether to accept it.
The $20,000 equals the largest criminal fine that state law allows for the offense.
The March 31 complaint against Frost alleged he and Fearless Grain Marketing “purchased at least 23 loads of grain over the past six months and continued to make such purchases after staff explained that Fearless needed to obtain a grain buyer license to continue purchasing grain.”
The fine is $1,000 per offense up to $20,000.
The settlement places a variety of conditions on Frost and Fearless:
- They agree to immediately cease and desist operating as an unlicensed grain
- They agree not to purchase grain for resale in South Dakota unless licensed as a grain buyer.
- They agree to provide commission staff a list of all grain purchase and delivery contracts between Frost or Fearless and any other entity.
- They agree to provide commission staff weekly updates on the status of each outstanding contract until all of those contracts are fulfilled, paid in full, or transferred.