Kentucky Tobacco Warehouse Supervisor Indicted in Crop Insurance coverage Fraud Scheme

Prosecution of widespread crop insurance coverage fraud in Kentucky has continued with the indictment of a tobacco warehouse supervisor who allegedly facilitated a number of the schemes.

Thomas H. Kirkpatrick, supervisor of Farmers Tobacco Warehouse in Danville, conspired with not less than 4 farmers and offered them with paperwork, permitting them to falsely declare crop bills, the March 13 indictment reads.

“It was the aim of the conspiracy to revenue from producing false documentation that made it seem as if farmers bought tobacco they really produced from Farmers Tobacco Warehouse, which the farmers then submitted to their insurance coverage adjusters so as to lower their manufacturing reported to the FCIC (Federal Crop Insurance coverage Corp.), resulting in inflated insurance coverage indemnity funds,” the indictment famous.

Prosecutors defined that almost all federal crop insurance coverage insurance policies are bought by accepted non-public insurance coverage corporations, referred to as accepted insurance coverage suppliers, or AIPs, by means of an insurance coverage agent engaged on behalf of the AIP. AIPs are reinsured by the FCIC.

One of many farmers named within the indictment, David Hunt, pleaded responsible final week to conspiracy to commit cash laundering, the Lexington Herald-Chief reported. Two others even have pleaded responsible and are awaiting sentencing.

If convicted, Kirkpatrick might withstand 20 years in jail and forfeiture of property.

It’s the most recent developments in a federal investigation in recent times that has led to the arrest and convictions of some two dozen farmers, warehouse staff and an insurance coverage adjuster, the information web site reported. Michael McNew, a former insurance coverage agent and adjuster, was sentenced not too long ago to seven years in jail and was ordered to pay $10 million in restitution.

Matters
Fraud
Agribusiness
Kentucky