Man Pleads Guilty In Crop Insurance Fraud Case

Nov. 24--A Rocky Mount man was sentenced Nov. 17 in federal court for his role in a crop insurance fraud case.

Walter Gregory Pridgen, 54, of Rocky Mount pleaded guilty in September 2010 to conspiring to make false statements, to make material false statements and to commit mail and wire fraud, and making false statements in connection with the crop insurance program.

Pridgen was sentenced to one day in federal prison followed by five years of supervised release. The first six months of his supervised release will be served under house arrest. He was ordered to pay $972,360 in restitution.

"The sentence reflects a reduction for (his) cooperation," said U.S. Attorney Thomas G. Walker.

Information provided through the investigation revealed Pridgen, along with codefendant, Marvin Kemp Pridgen, conspired with Wilson resident, Robert Carl Stokes, a former insurance agent, to allegedly defraud crop insurance companies.

"The Pridgens sold hidden tobacco in false and nominee names, and filed false crop insurance claims," federal officials said. "It is estimated that they committed over $1,000,000 in fraud."

"Laundering money is untaxed dollars that shifts the tax burden to all honest taxpaying citizens," said Acting Special Agent in Charge Kay B. Jernigan of the IRS-Criminal Investigation unit. "Mr. Pridgen stole from the government and tried to conceal the source of his income. IRS Criminal Investigations did not allow Mr. Pridgen to get away with his crime."

There have been more than 21 people who have pleaded guilty in connection with this scheme, including Stokes, Mark Davis Pridgen and Roy Joynson Raynor, who were considered "main characters."

Pridgen, 62, of Wilson, pleaded guilty in October 2009 to conspiring to make false statements, to making material false statements, to committing mail and wire fraud and conspiring to launder money.

He was sentenced to 18 months in prison followed by three years of supervised release. He will spend the first 18 months of his supervision under house arrest. He was ordered to pay $10,280,835 in restitution to the USDA/Risk Management Agency, the rural Community Insurance Co. and the American Agri-Business Insurance Co.

Raynor, 56, of Rocky Mount, pleaded guilty in July 2010 to conspiring to make false statements, making material false statements and committing mail and wire fraud.

He will spend one year in prison followed by two years of supervised release with one year of his release spent under house arrest. He was ordered to pay a fine of $100,000.

In October 2009, Stokes, a Wilson resident and former owner of The Hallmart Agency, pleaded guilty to conspiring to make false statements, making material false statements, committing mail and wire fraud, and conspiring to launder money.

Stokes was sentenced to 30 months in prison followed by three years of supervised release. The first 18 months of his supervised release will be spent on house arrest. In addition to serving active prison time, he was ordered to pay $16,528,215 in restitution to the U.S. Department of Agriculture, Risk Management Agency, the Rural Community Insurance Co. and the American Agri-Business Insurance Co.

[email protected] -- 265-7821

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