Creditors of the defunct Ashby Farmers Cooperative Elevator Co. have settled a claim with its former board members for failing to uphold their fiduciary responsibility and monitor the actions of former manager Jerry Hennessey, who stole millions of dollars from the elevator.LitigationExcess & Surplus Lines
The $1.45 million settlement will be paid entirely out of the cooperatives $1.5 million "directors and officers" insurance policy.
Separately, the creditors will go after the man who drove Hennessey away to Iowa in 2018, saying Hennessey in 2012 used $11,500 in co-op funds to buy the mans home in Fergus Falls, Minn.
Hennessey remains in federal prison in North Carolina after pleading guilty to stealing $5.4 million from the elevator over at least 15 years, using the money for big game hunting trips around the world.
As a result of his embezzlement, the elevator became insolvent with $10 million owed to creditors, which include area farmers.