Posted December 15, 2014
A federal
jury found potato farmers Aaron and Derek Johnson guilty of crop insurance
fraud, according to an AgWeek article available here. Inforum also
published an article available here
and Valley News Live here.
The jury
unanimously found the Johnson brothers guilty of intentionally destroying part
of their crops to receive unfair gains in crop insurance and federal disaster
payments. Both brothers were convicted of conspiracy and false statements to
the U.S. Department of Agriculture Risk Management Agency. Aaron Johnson was
also found guilty of lying to the USDA Farm Service Agency.
A sentencing hearing is scheduled for March 9 at 1:30 p.m.
in Fargo, North Dakota, and both brothers have been released,
according
to Inforum.
The brothers
were accused of damaging potatoes from 2002 to 2010, collecting almost $2
million in crop insurance and federal disaster payments. The testimonies centered
around allegations that the Johnsons ruined their 2006 crop by adding chemicals
such as Rid-X, as well as heat, water, and frozen potatoes to their stored
potatoes.
The
Johnsons were charged individually and have denied all charges.
The Johnsons
and their farming operations gained millions of dollars in federal crop insurance
indemnities, subsidized crop insurance premiums, and federal disaster benefits,
according to Valley
News Live.
The brothers
face up to 30 years in prison and millions of dollars in fines, restitution,
and criminal forfeiture.
For more information on crop insurance programs, please
visit the National Agricultural Law Center’s website here.
