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Ronnie Jolly, a farmer from Paris, Kentucky, has been chargedwith crop insurance fraud, wire fraud, and moneylaundering-related offenses.

A federal grand jury in Lexington returned the indictmentcharging Jolly with one count of conspiring to violate federal law,six counts of making false statements to influence the Federal CropInsurance Corporation (“FCIC”) and companies reinsured by theFCIC, one count of conspiracy to commit wire fraud, 21 counts ofmoney laundering, and one count of structuring currencytransactions to avoid reporting requirements.

Hid crop production from insurer

The indictment alleged that Jolly, an agricultural producer oftobacco, corn, and soybeans in Bath, Bourbon, Fleming, Montgomery,and Scott Counties, hid his crop production from his insurancecompany to claim damage to his crop sufficient to trigger cropinsurance indemnity payments, which are funded by the federalgovernment through the FCIC.

According to the government, he also obtained crop insurancepolicies in the names of his employees for crops that heproduced. Prosecutors alleged this was designed to avoidfederal government scrutiny over his claims of crop damage becausehe spread the damage among several producers. Similarly, theindictment alleged that Jolly obtained private crop insurancepolicies in the names of others.

At least 21 bank transactions

According to the indictment, Jolly used the proceeds fromcrop insurance indemnity checks and fraudulent crop sales to makeat least 21 bank transactions, in violation of federal moneylaundering statutes. He also was alleged to have withdrawn$9,500 in cash from his bank accounts on four consecutive days inan effort to avoid federal bank reporting requirements.

For the conspiracy to violate federal law charge, Jolly faces upto five years in prison and a fine of $250,000. For each charge ofmaking false statements to the FCIC, he faces up to 30 years inprison and a fine of $1,000,000.

For the conspiracy to commit mail and wire fraud and structuringcharges, Jolly faces 20 years in prison and a fine of $250,000, andfor the remaining money laundering charges, Jolly faces 10 years'imprisonment and a $250,000 fine.

Related: Washed-out Florida farms show limits of cropinsurance reach

Steven A. Meyerowitz, Esq., is the director of FC&S Legal, theeditor-in-chief of the Insurance Coverage Law Report, and thefounder and president of Meyerowitz Communications Inc. Email himat [email protected].