Thursday, July 25, 2019

Kentucky tobacco farmer latest convicted of crop-insurance fraud; nearly half a million dollars, and it's not the biggest

A Central Kentucky tobacco farmer pleaded guilty in federal court Monday to a charge of conspiring to file false claims on crop-insurance policies totaling $480,000. Keith Foley "claimed that he grew less tobacco than he actually produced in 2010, 2011, 2014 and 2015 so that he could get an insurance payment based on the lower yield, according to his plea agreement," Bill Estep reports for the Lexington Herald-Leader.

According to the agreement, Foley sold some tobacco under other people's names, and under separate hail-insurance policies, he submitted false claims. A crop adjuster helped Foley submit the false reports in exchange for part of Foley's insurance payout, Estep reports.

"Authorities have charged several people with crop-insurance fraud in Central Kentucky in recent years," Estep notes. One "faces sentencing in September on charges from an indictment alleging he grossed $2.6 million through fraudulent claims; and four men who farmed in Bourbon and Nicholas counties, who face trial in September."

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