Kentucky tobacco farmer pleads guilty to nearly half a million dollar tobacco crop insurance fraud scheme - Entrepreneur Generations

On Monday, a Central Kentucky tobacco farmer pleaded guilty in federal court to a charge of conspiring to file false claims on crop-insurance policies totaling $480,000. Keith Foley "claimed that he grew less tobacco than he actually produced in 2010, 2011, 2014 and 2015 so that he could get an insurance payment based on the lower yield, according to his plea agreement," Bill Estep reports for the Lexington Herald-Leader.

According to the agreement, Foley sold some tobacco under other people's names. And under separate hail policies, he submitted false reports on damage to his tobacco crops to justify insurance claims. A crop adjuster helped Foley submit the false reports, in exchange for part of Foley's insurance payout, Estep reports.

"Authorities have charged several people with crop-insurance fraud in Central Kentucky in recent years. They include Bourbon County farmer Ronnie Jolly, who faces sentencing in September on charges from an indictment alleging he grossed $2.6 million through fraudulent claims; and four men who farmed in Bourbon and Nicholas counties, who face trial in September," Estep reports. "Last year, U.S. District Judge Joseph M. Hood sentenced Debra Muse, a Fleming County woman who sold crop insurance and worked at a tobacco warehouse, to five years in prison."

from The Rural Blog https://ift.tt/2Y0WhZY Kentucky tobacco farmer pleads guilty to nearly half a million dollar tobacco crop insurance fraud scheme - Entrepreneur Generations

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