Posted March 6, 2014
Two potato growers in North Dakota have been indicted
for allegedly conspiring to spoil their stored potato crop, for which they received
close to $840,000 in crop insurance and disaster payments, according to an
article by The Packer available here.
A federal grand jury returned the indictment against
brothers, Aaron Johnson, Derek Johnson, and their company, Johnson Potato
Co. They are each charged with one count
of conspiracy to commit crimes against the United States and four counts of
making false statements.
The indictment alleges that in 2006, after the Johnson
brothers stored their potatoes, “they poured Rid-X on the potatoes and turned
large, portable heaters about 80 degrees to ‘accelerate the spoilage process in
the potatoes.’” They, then, reported the
loss as a natural disaster and collected $680,400 in crop insurance and
$159,400 in disaster payments.
Rid-X is designed for dissolving solids in septic
systems “and smaller amounts of already frozen or spoiled spuds to the
undamaged potatoes in the warehouse,” according to an article by Prairie Business
available here.
According to Assistant U.S. Attorney Nick Chase, the
brothers lied to insurance agents, saying that the crop was lost to “naturally
caused diseases” such as “soft rot.” The
indictment alleges that the brothers lied about the damage to the potato crop
through May 5, 2009.
For more information on crop insurance and disaster
assistance, please visit the National Agricultural Law Center’s website here.
