Kentucky farmer allegedly hid his tobacco as part of insurance fraud scheme

Lexington Herald-Leader (KY)

Nov. 01--A Bourbon County man hid how much tobacco he produced in order to defraud insurance companies, a grand jury has charged.

The grand jury in federal court in Lexington indicted Keith A. Foley Thursday on four charges of making false statements to influence the Federal Crop Insurance Corporation (FCIC) and companies it backs, and on one charge of conspiring to commit wire fraud, according to a news release from U.S. Attorney Robert M. Duncan Jr.

The federal government funds crop-insurance payments through the FCIC.

Foley, 49, of Paris, grew tobacco in Bourbon and Jessamine counties, according to the news release.

The grand jury charged that as early as 2010, Foley concealed his tobacco production in order to claim enough damage to crops to trigger insurance payments or to get bigger payments, according to Duncan.

The wire-fraud charge alleges Foley submitted false information to justify insurance payments.

One of Foley's insurance claims, in 2015, allegedly included a photograph that had already been submitted on a claim by another farmer.

The most serious charges against Foley carry a top sentence of 30 years.

The indictment is the latest of several alleging crop-insurance fraud in Central Kentucky.

In March, Paris farmer Ronnie Jolly was charged in an indictment alleging he grossed $2.6 million through fraudulent insurance claims.

Jolly's attorney recently filed a motion saying he intends to plead guilty on four charges.

In June, a federal grand jury charged that four farmers who raised tobacco in Bourbon and Nicholas counties took part in defrauding the federal crop-insurance program of hundreds of thousands of dollars.

Bradley Price, 34; his brother Brandon Price, 27; their father Jimmy Price, 57; and 58-year-old Lonnie Brierly, who farmed with the Prices, have pleaded not guilty and are scheduled for trial in January.

And in September, a federal judge sentenced Debra Muse, a Fleming County woman convicted of taking part in crop-insurance fraud, to five years in prison.

Prosecutors in that case argued that Muse "churned out" false documents that caused the government to pay out nearly $6 million to producers who didn't really deserve it.

"This investigation has revealed that the abuse of the crop insurance program is pervasive and severe," prosecutors said in a sentencing memorandum. "Like any government benefit program, people find a way to abuse and unjustly benefit from the system designed to help those that need it."

___

Visit the Lexington Herald-Leader (Lexington, Ky.) at www.kentucky.com

Distributed by Tribune Content Agency, LLC.