A Central Kentucky farmer pleaded guilty to taking part in fraud involving a loss of more than $700,000 to a federal agency and an insurance company.
James A. McDonald entered a plea in federal court in Lexington Thursday to two charges of conspiracy to commit an offense against the U.S. through fraud involving crop insurance.
McDonald’s sister-in-law, Cherie Lynn Noble, also pleaded guilty Thursday to one charge of crop insurance fraud.
McDonald owned and rented farm land in Bourbon and Nicholas counties and grew tobacco and corn during the period covered in the charges from 2013 to 2017, according to the court record.
McDonald worked with another farmer charged in the case, Randall D. Taulbee — and at times with an insurance agent — to falsify crop insurance polices a number of ways, according to his plea agreement.
Those included claiming to grow more acres than he did in at least one year, bringing a bigger payout on a loss claim; falsifying a loss claim for at least one crop year; falsely inflating expenses; claiming sole ownership of a crop when he was actually partners with Taulbee and split an insurance payout with him; and selling corn in the name of his son to hide the sales.
The plea agreement did not identify the insurance agent who allegedly helped with the fraud.
Taulbee has pleaded not guilty.
In the 2015 and 2016 crop years, McDonald agreed with Taulbee to take out insurance on their tobacco crop in Noble’s name, McDonald said in his plea.
Source: yahoo.com
Photo Credit: GettyImages-Pattanaphong Khuankaew
Categories: Kentucky, Crops