BISMARCK, N.D. (AP)--The former director of two prominent Wheat groups has pleaded guilty to stealing nearly $113,000 from the organizations, but he could have the convictions wiped from his record if he stays out of trouble for two years.

Lance Hagen, the former director of the North Dakota Grain Growers Association and the U.S. Durum Growers Association, pleaded guilty April 4 to two charges of misapplication of entrusted property. The felony charges refer to the money he was handling for the organizations, which Hagen said he stole to play the commodities market.

District Judge Robert Wefald deferred Hagen's sentence for two years and put him on probation. He also ordered Hagen to put in 200 hours of community service and pay $800 in fines. If Hagen fulfills those obligations, the convictions will be erased from his record.

A deferred sentence is typical in such a case, but Hagen deserves to have the convictions on his record, Burleigh County State's Attorney Richard Riha said.

"A shoplifter will get a sentence," he said after the hearing. "I think with the money we're talking here--there should be a permanent record of this."

Riha had recommended a suspended sentence of a year in prison along with fines and community service.

Each of the convictions carries a maximum punishment of a 10-year prison term and a $10,000 fine. If he violates probation, Hagen could be subject to the full sentences.

Hagen was director of the commodity groups until April 2004, when the thefts were discovered. The Grain Growers Association represents Wheat and barley farmers and the Durum Growers represents farmers who raise durum, a Wheat variety used to make pasta. Both are based in Bismarck.

Hagen was dismissed as director of both organizations after admitting the thefts to Grain Growers directors. Hagen and officials from both groups said he repaid them in full.

Hagen's attorney, Orell Schmitz of Bismarck, said Hagen's admission of the thefts and his restitution played a part in the deferred sentence.

"Lance stepped forward and went to the people on the board," he said outside the courtroom.

The Grain Growers and the Durum Growers submitted statements to Wefald asking that Hagen not be sentenced to prison, Schmitz said.

Date: 4/21/05