USA - Tobacco farmers settle civil claims in widespread crop insurance fraud investigation

20.10.2020 657 views
Seventeen tobacco farmers have agreed to resolve civil allegations that they violated the False Claims Act, a federal law that prohibits submitting false or fraudulent claims for payment to the government.  As part of their civil settlement agreements, all of the defendants admitted that they submitted, or caused to be submitted, false claims to a federally-backed crop insurance program. The United States Department of Agriculture administers its crop insurance program through approved private insurance companies, who sell federally-backed multi-peril crop insurance (“MPCI”) policies to farmers. MPCI policies provide insurance coverage for harvests that are at risk from inclement weather or other naturally occurring events. Under the crop insurance program, eligible farmers are paid benefits based, in part, on factual representations as to the amount of crop harvested and sold and the cause of loss. As part of their civil settlement agreements, all 17 defendants admitted that they submitted, or caused to be submitted, false claims for MPCI indemnity payments to federally-funded approved crop insurance providers. Several defendants submitted claims for damaged tobacco crop in order to receive indemnity payments, but in fact sold the same tobacco for cash under fictitious names at Clay’s Tobacco Warehouse. Other defendants claimed ownership of the crops on their insurance applications, despite having partial or no ownership, in order to hide the identity of the crop owner and receive a cut of the indemnity payment. With assistance from crop insurance agents and adjusters, the defendants also inflated crop loss amounts and submitted falsified documentation about the quality of the tobacco crop to the insurance company.  The 17 defendants acknowledged that they made these false statements and false claims in order to secure indemnity payments to which they were not otherwise entitled. Collectively, these defendants received nearly $900,000 in indemnity payments as a result of their false claims. The defendants all have agreed to pay the United States as part of their settlement agreements. Several of the defendants also have agreed to sell farmland, vehicles, and other property and remit the net sale proceeds to the federal government. The government’s work in this investigation illustrates its commitment to combatting crop insurance fraud through civil enforcement under the False Claims Act.  Tips from all sources about potential fraud can be reported to the U.S. Department of Agriculture Office of Inspector General at http://www.usda.gov/oig/hotline.htm. Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jason Williams, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Juan Garrett, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly announced the civil settlements. These investigations are conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and Kentucky Department of Insurance. The United States is represented by Assistant United States Attorneys Meghan Stubblebine and Christine Corndorf. Source - https://allongeorgia.com
05.10.2026

Moldova receives 185 bids for crop insurance aid

Moldovan agricultural producers submitted 185 applications totaling roughly €0.98 million (approx. 19.64 million MDL) to subsidize insurance premiums for 2025 contracts, the country's farm payment agency announced following the close of its September call.

05.10.2026

Climate Risks Push Cambodia to Consider Crop Insurance for Farmers

Droughts, floods and rising temperatures are putting Cambodia’s farmers under growing financial pressure, prompting the Ministry of Agriculture to consider crop insurance as a way to protect farmers from losses.

05.10.2026

USA - USDA Adds More Than 30 Million Base Acres to Farm Safety Net Programs

USDA has added more than 30 million base acres to ARC and PLC and expanded crop insurance options and regenerative agriculture funding.

05.10.2026

India - Why 100 UP Farmers Are Planting Turmeric Beside Crops That Elephants Love to Eat

For farmers in Uttar Pradesh’s Terai, one elephant raid can undo months of work. So instead of relying only on fences, some are trying a simple shift: growing turmeric, a crop elephants tend to leave alone.

05.10.2026

Philippines - Agricultural losses soar past P5.5B as strong El Niño scourges 7 regions

More than 201,000 farmers and fisherfolk nationwide sustained losses reaching P5.56 billion after prolonged dry conditions damaged crops across several parts of the country, the Office of Civil Defense (OCD) reported on Monday, Oct. 5.

05.10.2026

India - Karnataka drought: 217 of 240 talukas affected; crop losses at roughly ₹46,000 crore

Crop losses due to the drought is pegged at around ₹46,000 crore. The Karnataka government has sought ₹7,142.64 crore in drought relief from the Centre under National Disaster Response Fund norms.

01.10.2026

India - Kitchen budget in Mumbai takes a hit as veggie prices rise amid crop loss, low supply

Vegetable prices in Mumbai have risen sharply after Ganeshotsav and with the onset of Pitrupaksha, as erratic monsoon conditions, crop damage and lower arrivals tightened supplies, said traders. 

01.10.2026

Togo Plans Pilot Agricultural Insurance Scheme for Young Farmers and Entrepreneurs

Togo’s PAJEC entrepreneurship program plans to launch a pilot agricultural insurance scheme. The government has issued a call for expressions of interest to select a provider to design and roll out the scheme.