KANSAS FARMER PLEADS GUILTY TO CROP INSURANCE FRAUD

The following information was released by the U.S. Department of Justice:

A Kansas man pleaded guilty to defrauding the U.S. Department of Agriculture (USDA) by falsely claiming severe weather destroyed crops that he had actually sold instead.

According to court documents, David L. Mongeau, 54, of Holcomb pleaded guilty to one count of false statements related to crop insurance and one count of bank fraud/attempted bank fraud.

Mongeau owned Mongeau Enterprises, a farming operation in western Kansas. In 2019, he obtained a crop insurance policy through the USDA's Federal Crop Insurance Program (FCIP) which is subsidized by the federal government. In January 2020, Mongeau submitted a claim indicating he lost a portion of his corn crop in Rooks County, Kansas, due to hail and excess wind. He failed to disclose having sold more than 33,000 bushels of corn to agricultural commodity traders. The sales included corn that he indicated as a loss when filing a crop insurance claim. As a result, Mongeau received an overpayment, causing $241,645 in losses for the FCIP.

Mongeau obtained farm loans from the First National Bank of Syracuse (now doing business as Dream First Bank of Garden City). He pledged numerous pieces of farm equipment along with crops as collateral to secure the loans. Mongeau either traded in or sold collateral and failed to notify the bank about the dispositions. As a result, the bank did not know the collateral was no longer available, and the bank suffered more than $300,000 in losses.

"Kansas is part of the 'Breadbasket of America' because of the important role our farmers play in feeding the nation," said U.S. Attorney Ryan A. Kriegshauser. "We all know that farming is a challenging profession with a litany of potential obstacles, so the Federal Crop Insurance Program serves as a safety net through difficult times. Mr. Mongeau took what was supposed to be a helping hand and exploited that generosity for his own personal gain."

"Fraud against federal crop insurance programs is a direct abuse of taxpayer-funded support intended to help farmers recover from legitimate losses," said Inspector General John Walk for the U.S. Department of Agriculture Office of Inspector General. "As alleged, the defendant sought to profit by falsely claiming losses while selling the same crops, undermining the integrity of a program that producers depend on. USDA OIG will continue to pursue those who attempt to exploit these programs and work with our law enforcement partners to ensure they are held accountable. We thank the United States Attorney's Office and HSI for their continued collaboration in this case."

Mongeau is scheduled to be sentenced on July 1, 2026.

The U.S. Department of Agriculture Office of Inspector General is investigating the case.