Ronnie Jolly, a farmer from Paris, Kentucky, has been charged with crop insurance fraud, wire fraud, and money laundering-related offenses.
A federal grand jury in Lexington returned the indictment charging Mr. Jolly with one count of conspiring to violate federal law, six counts of making false statements to influence the Federal Crop Insurance Corporation (“FCIC”) and companies reinsured by the FCIC, one count of conspiracy to commit wire fraud, 21 counts of money laundering, and one count of structuring currency transactions to avoid reporting requirements.
The indictment alleged that Mr. Jolly, an agricultural producer of tobacco, corn, and soybeans in Bath, Bourbon, Fleming, Montgomery, and Scott Counties, hid his crop production from his insurance company to claim damage to his crop sufficient to trigger crop insurance indemnity payments, which are funded by the federal government through the FCIC.
According to the government, he also obtained crop insurance policies in the names of his employees for crops that he produced. Prosecutors alleged this was designed to avoid federal government scrutiny over his claims of crop damage, because he spread the damage amongst several producers. Similarly, the indictment alleged that Mr. Jolly obtained private crop insurance policies in the names of others.
According to the indictment, Mr. Jolly used the proceeds from crop insurance indemnity checks and fraudulent crop sales to make at least 21 bank transactions, in violation of federal money laundering statutes. He also was alleged to have withdrawn $9,500 in cash from his bank accounts on four consecutive days in an effort to avoid federal bank reporting requirements.
For the conspiracy to violate federal law charge, Mr. Jolly faces up to five years in prison and a fine of $250,000. For each charge of making false statements to the FCIC, he faces up to 30 years in prison and a fine of $1,000,000. For the conspiracy to commit mail and wire fraud and structuring charges, Mr. Jolly faces 20 years in prison and a fine of $250,000, and for the remaining money laundering charges, Mr. Jolly faces 10 years' imprisonment and a $250,000 fine.
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].