DELAVAN — A Delavan farmer is facing 15 felony charges after authorities allege he sold grain pledged as loan collateral without permission, resulting in losses exceeding $900,000 for a lender.
Craig Douglas Johnson, 60, has been charged in Faribault County District Court with seven counts of theft by swindle and eight counts of theft involving property subject to a legal interest with intent to permanently deprive another.
The investigation began in April 2026 after the sheriff’s office received a report from Bank Plus alleging Johnson had sold collateral pledged against multiple farm loans without the bank’s permission, according to the criminal complaint.
Authorities allege Johnson operated several farming businesses within the county between 2022 and 2025 and entered into three loan agreements with the bank between September 2022 and April 2023 totaling $565,000. As security for the loans, Johnson reportedly pledged growing and harvested crops, farm equipment, vehicles, inventory and other farm assets.
The complaint states Johnson defaulted on the loans by September 2024, at which time the balance had grown to more than $738,000 with interest and penalties. During collection efforts, the bank discovered Johnson had allegedly sold grain pledged as collateral to Stateline Grain Elevator in Blue Earth between January 2023 and March 2024 without notifying the bank or obtaining permission.
An employee was reportedly directed to deliver grain to the elevator under the name of his daughter, allowing the sales to bypass the lien search conducted by the elevator. Because the grain was sold under her name, investigators said the elevator found no recorded security interest before issuing payment.
Johnson allegedly sold grain under his daughter’s name, Emily Stevermer, on 27 occasions between January 2023 and March 2024. Authorities allege she deposited the checks into her personal bank account before transferring the money to her father by check or electronic transfer and none of the proceeds were paid to the bank, according to the complaint.
The complaint states Stevermer testified under oath during bankruptcy proceedings that the grain sold in her name belonged exclusively to her father and that none of the proceeds were provided to the lender.
The criminal charge comes after a civil lawsuit Bank Plus filed in Faribault County District Court in September 2024 against StateLine Cooperative and Stevermer. In that case, the bank alleged Johnson had sold corn and soybeans subject to its security interests to StateLine under third-party names, including Stevermer’s.
Johnson reportedly filed for bankruptcy in February 2025. As of April 9, 2026, the bank reported losses exceeding $900,000, including unpaid interest and collection costs.
According to the criminal complaint, $400,000 has been recovered through a judgment against Stateline Grain Elevator, and another $155,000 was recovered through liquidation of Johnson’s remaining farm equipment. The complaint states a remaining judgment of approximately $363,595 continues to accrue interest.
Johnson will first appear before the court on Aug. 31.