Federal investigators say that they suspect tobacco farmers, crop insurance agents, tobacco warehouse owners, and other individuals in Central Kentucky colluded to dupe thousands—possibly even millions—of dollars from the crop insurance program instituted by the U.S. Department of Agriculture.
According to investigators, certain producers in the region consistently and deliberately underreported their tobacco production to induce an insurable loss payment. Some producers even stopped planting crops altogether while continuing to defraud the insurance program.
The U.S. District Court in
Lexington made public over 400 pages of search warrant applications and other related documents on Dec. 14 summarizing the ongoing investigation.
Federal investigators examined several sites in Mount Sterling last week, searching through several tobacco warehouses and even an insurance agency, to seize evidence.
No charges have been filed, to date.
