An Iowa man who spoke to North Dakota farmers a year ago about supplying sugar beets for an ethanol plant in the Red River Valley has been ordered by regulators in his home state to stop soliciting investments for Energae LP.
That company last year said it planned to buy the shuttered ethanol-from-corn plant in the northeastern North Dakota city of Grafton and refurbish it to turn beets into the alternative fuel. The deal never materialized and the plant has since been dismantled.
Iowa officials accuse Darrell Smith, of Forest City, Iowa, of improperly handling sales of securities, and they've suspended his insurance license. Smith says in a published report that he plans to challenge the ruling. His attorney says no laws have been broken.