Fraud of the Week

Crop Fraud – Kentucky

Amount – $23,000,000

A former crop adjuster and agent was sentenced to eighty-six months in federal prison for conspiracy to commit wire fraud in a $23 million crop insurance fraud scheme and sentenced to twelve months in prison for conspiracy to commit crop insurance fraud.

As as adjuster he worked with agricultural producers to fabricate or inflate claims for crop damage and falsify the number of acres of crops planted on the claim forms. As an agent, he continued committing fraud by inflating or falsifying acreage reported and damages to crops, and used generic photos in order to show supposed damage to the property. He submitted applications for crop insurance for friends and family of his farmer co-conspirators in order to spread out losses and obtain better guarantees. These friends and family were not farmers and had no crops to insurer. He admitted to causing a total loss of more than $23,000,000.