Search
866-630-2389
Roberts Law Group, PLLC
North Carolina Criminal Defense Attorneys
We FIGHT to Get Results
We FIGHT to Get Results

Crop Insurance Fraud Scheme Uncovered In North Carolina

A fraud scheme that involved cash for crops while the same farmers made insurance claims for damaged produce has resulted in at least 41 people reaching negotiated pleas or simply pleading guilty to insurance fraud charges in North Carolina. The farmers involved had made fraudulent insurance claims for allegedly damaged products that included soybeans, tobacco, corn and wheat, but none of the involved products were actually unsellable.

The U.S. Department of Agriculture conducted an audit in 2005 that eventually led to the downfall of the North Carolina crop insurance fraud scheme. Certain insurance agents tended to have clients who consistently reported extremely poor yields and required insurance payouts.

Robert Stokes of Wilson appeared to be the hub the wheel that was a sophisticated insurance fraud scheme. He led federal investigators to even more people involved in the crop insurance fraud, including adjusters and brokers. Stokes pled guilty to conspiring to make false statements and money laundering. He was sentenced to 30 months in prison. Stokes is already out on supervised release and paying $200 a month toward his $16.5 million court-ordered restitution.

Approximately 15 private insurers provide crop insurance to America's farmers. The federal program was part of the government's response to the 1930s Dust Bowl and is intended to shield farmers from poor growing seasons. Although the program is run by private insurers, U.S. taxpayers eventually foot the bill when a claim is made, along with other farmers who likely experience increased premiums.

Approximately $15.6 billion was paid out in crop insurance settlements in 2012.

Source: Foster's Daily Democrat, "Feds bust up $100M NC crop insurance fraud ring," March 17, 2013

Client Reviews

Get Legal Help Now
Let Us Help You

Put our team of criminal defense lawyers on your side today. You are one phone call or email away from getting your questions answered by an experienced defense attorney.

Call now to set up a free consultation.

Fill out the form below for a Free Consultation.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Nation's Top One Percent - National Association of Distinguished Counsel - NADC Top 100 Trial Lawyers - The National Trial Lawyers LC - Lead Counsel Rated BBB Accredited Business - Rating: A+ National College for DUI Defense - General Member Client Distinction Award Super Lawyers Avvo Rating 10.0 Superb - Top Attorney Criminal Defense

Call 866-630-2389 to schedule a free initial consultation.
Offices open weekdays 8am - 7pm, Saturdays 9am - 5pm