USA - Kentucky farmer allegedly got $1 million via crop insurance fraud

10.09.2018 210 views
A Fleming County farmer grossed more than $1 million through fraudulent crop-insurance claims and other illegal acts, a federal grand jury has charged. The indictment is the fourth related to crop insurance fraud that has been handed down since 2017 in U.S. District Court for the eastern district of Kentucky. Christopher G. Hickerson, 45, raised tobacco, winter wheat and soybeans in Fleming County. An indictment returned Thursday said Hickerson hid his tobacco production from insurance companies to claim damage to his crop, according to a release from U.S. Attorney Robert M. Duncan Jr. The alleged damage was sufficient to trigger insurance payments or generate larger payments, which are funded by the government through the Federal Crop Insurance Corporation. The indictment also charges Hickerson with two counts of conspiracy to commit crop insurance fraud. The first conspiracy count alleges Hickerson worked with others to obtain false quality adjustments on tobacco presented to graders as belonging to Hickerson to inflate his loss claim. The tobacco, instead, belonged to others. The second count alleges Hickerson obtained crop insurance policies in others’ names to take advantage of their new producer status. A new producer may receive a higher guarantee for crop insurance than an individual who has a history of claiming losses. Hickerson faces a total of 10 charges. The alleged acts took place from late 2009 through early 2017. The indictment seeks a judgment of $1,007,403 from Hickerson, representing the approximate amount he allegedly derived from the crop insurance fraud. The most serious charges carry sentences of up to 30 years in prison and a $1 million fine. The Hickerson indictment comes on the heels of other recent indictments alleging fraud in connection with federal crop insurance. In June, four Central Kentucky farmers were charged with defrauding the crop-insurance program of hundreds of thousands of dollars. Bradley Price, Brandon Price, Jimmy Price and Lonnie Brierly have pleaded not guilty. Their jury trial is scheduled for Jan. 15. Bradley and Jimmy Price and Brierly raised tobacco in Bourbon and Nicholas counties. Brandon Price raised tobacco in Nicholas County. In March, Paris farmer Ronnie Jolly was charged in an indictment that alleged he grossed $2.6 million through fraudulent crop-insurance claims and other illegal acts. Jolly, who owned or rented farmland in Bourbon, Scott, Bath, Fleming and Montgomery counties, has pleaded not guilty. His jury trial is scheduled for Jan. 8. And in April, Debra Muse, a Fleming County woman who worked as a crop-insurance agent, pleaded guilty to helping burley tobacco growers steal money through the federally-backed program. Source - https://www.kentucky.com
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