Scandal rocks South Texas grain storage company after more than $20M of inventory goes 'missing'

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Rio Grande Valley's Garcia Grain Trading Corp. was shut down by state inspectors and its owners have sought refuge in bankruptcy court.

Those creditors have a security interest in grain inventory, and/or liens on the Progreso elevator or equipment.

But StoneX said it and others who may assert an interest in the grain could be"irreparably harmed by the difficulty in resolving ownership disputes and respective lien rights to the Grain and Grain proceeds." At StoneX's request, Rodriguez is conducting a hearing April 6 to determine the interests in the grain and proceeds.

It alleges Garcia Grain's owners have stripped the bankruptcy"estate of its cash and assets in order to acquire ranches, farm land and other valuable assets through ... Affiliates but using the debtor's funds." The Corpus Christi lawyers representing the committee didn't respond to requests for comment.

In September, he received the Alamo elevator and 10 acres in Progreso — a transfer Garcia Grain valued at $1.1 million. Plascencia also accused Octavio Garcia of transferring $100,000 from another company they owned, transferring the money to Garcia Grain and then transferring it to himself.

 

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