IOWA CITY, Iowa (AP) - Iowa officials have canceled a $2.5 million grant for a firm proposing a technology to make fertilizer from corn cobs.
Iowa's economic development agency said Tuesday that SynGest, Inc. defaulted on its contract by not disclosing in its 2009 application that Chairman Serge Randhava had been sued for racketeering and fraud.
The agency released a copy of the default notice to The Associated Press, which reported on the lawsuit last month. The case was settled in 2009 along with another lawsuit in which Randhava was part of an investor group that accused others of fraud and racketeering.
SynGest CEO Jack Oswald says the cancellation "appears to be a knee-jerk reaction" and the company hopes to convince the state to change its mind and resume the grant funding. Randhava declined comment.