The longtime general manager of a Minnesota cooperative grain elevator is still missing, one month after suspicions arose that he used money from the co-op to finance exotic big-game hunting safaris and expensive taxidermy.
The Ashby Farmers Cooperative Elevator Co. said last week that it has identified more than $4.9 million in suspicious spending by Jerry Hennessey, who served as its general manager for nearly 30 years. That's more than double the $2 million estimate the co-op had announced two weeks ago.
Hennessey disappeared in early September as the co-op board began asking questions about a substantial bank loan that came due without assets to cover it. The co-op closed its doors Sept. 10, just as harvest season was getting underway.
Meanwhile, the co-op reopened last Wednesday and will continue to operate under new management. The board announced that it has reached a lease agreement with the Wheaton-Dumont Co-op, which operates 16 facilities in Minnesota and the Dakotas.
"We think Ashby will be a great addition to our family of elevators," said Philip Deal, the company's general manager. "We understand the importance of the elevator to the producers and the local community, and look forward to working with them for a long time to come."
Newly discovered checks written on the co-op's account allegedly by Hennessey include additional safari trips and payments of personal credit-card debt, as well as checks that appear to be written for land purchases by Hennessey and construction projects on his home, said Erik Ahlgren, a Fergus Falls lawyer who is helping the board trace the missing money.
"I don't necessarily think that we've found them all," Ahlgren said. "But I think we've done a pretty good first run through everything." It's unlikely that the co-op and its roughly 300 member-owners will be made financially whole, he added.
"Almost certainly we will not recover all the money," Ahlgren said. "Almost certainly both the bank and the members are going to take a financial loss."