A Sandusky winery owner was indicted on five federal charges stemming from, in part, the nonpayment of loans used to fund the winery, officials said.
The charges were filed in U.S. District Court, Toledo.
David Kraus, 52, of New York City, is charged with conversion of property charged as collateral with a farm credit agency and making numerous false statements, including on a loan application to a federally insured bank.
Mr. Kraus owned Kraus Winery, Inc., also known as Kraus Vineyard, Hermes Winery, and Sand Hill Winery.
Officials allege that, between January, 2006, and November, 2012, Mr. Kraus sold and directed sales of about $2 million of grapes and wine; the funds had been pledged as collateral for loans totaling $594,870.
Officials also allege that Mr. Kraus told U.S. Department of Agriculture Farm Service Agency officials that he received only “a few small checks” for grape sales and had no wine sales in 2009. That year grape sales totaled about $60,000 and wine sales totaled $271,380.
Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Comments that violate these standards, or our privacy statement or visitor's agreement, are subject to being removed and commenters are subject to being banned. To post comments, you must be a registered user on toledoblade.com. To find out more, please visit the FAQ.