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Joined: Nov 2005
Posts: 3,626
Campfire Tracker
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OP
Campfire Tracker
Joined: Nov 2005
Posts: 3,626 |
Federal investigators have unraveled a massive scheme among dozens of insurance agents, claims adjusters, brokers and farmers in eastern North Carolina to steal at least $100 million from the government-backed program that insures crops. Authorities say the ongoing investigation is already the largest such ring uncovered in the country. Forty-one defendants have either pleaded guilty or reached plea agreements after profiting from false insurance claims for losses of tobacco, soybeans, wheat and corn. Often, the crops weren't damaged at all, with farmers using aliases to sell their written-off harvests for cash. Prosecutors compared the case to busting a drug cartel, where federal investigators used a confidential informant to ensnare a key participant in the sophisticated fraud, who then agreed to implicate others. That first wave of prosecutions led to still more names to investigate. "These defendants make it harder on the honest farmer," Assistant U.S. Attorney Banumathi Rangarajan said. "The more they lie and steal the more premiums and costs go up for the farmers who play by the rules." The federal crop insurance program was created during the Dust Bowl of the 1930s as a way to keep farmers from going bankrupt because of a bad growing season. The U.S. Department of Agriculture pays about 15 private insurers to sell and manage the policies, but taxpayers are on the hook for most of the losses. Payouts for 2012 have topped $15.6 billion � a figure that is still growing as new claims are filed. Bruce A. Babcock, an agricultural economist at Iowa State University, said fraud likely accounts for a small percentage of that total. "There's always fraud in the crop insurance system, but I've seen nothing to suggest it is pervasive," Babcock said. "Eighty percent of the program costs are supported by the federal government. Some people see defrauding taxpayers like cheating on their income taxes." Those prosecuted in North Carolina raked in millions for years without detection until 2005, when prosecutors say USDA auditors used computer software to mine insurance claims data from across the country for outliers. Among the names identified was Robert Carl Stokes, a Wilson crop insurance agent whose clients appeared to have consistently horrible luck. Through prosecuting Stokes and his immediate co-conspirators, authorities were led to dozens of others involved in similar frauds throughout eastern North Carolina, with crooked claims adjusters and tobacco brokers working with multiple insurance agents and their farmer clients. The USDA's Office of Inspector General said the recent string of crop insurance convictions in eastern North Carolina eclipses similar investigations anywhere else in the United States. "Our agents have been involved in a remarkable number of successful crop insurance investigations in this district, with substantial monetary penalties and restitution ordered by the court," said Karen Citizen-Wilcox, Special Agent-in-Charge of the Southeast Region. USDA requires tobacco growers to take out crop insurance ahead of the growing season, but payment on those policies is not due until after the harvest. If the crop is damaged by bad weather or leaf-munching bugs, the farmer is paid the difference between the value of his diminished harvest and the amount of the policy.
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Joined: Dec 2006
Posts: 52,680
Campfire Kahuna
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Campfire Kahuna
Joined: Dec 2006
Posts: 52,680 |
What? There's no waste or fraud in the federal goobermint programs! This is the most rransparent administration in history too!
Liberalism is a mental disorder that leads to social disease.
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Joined: Mar 2004
Posts: 12,807
Campfire Outfitter
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Campfire Outfitter
Joined: Mar 2004
Posts: 12,807 |
The simple truth is that if you want a more honest Gov't, you've got to cut down on it's powers.
Islam is a terrorist organization.
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Joined: Jan 2001
Posts: 59,184 Likes: 3
Campfire Kahuna
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Campfire Kahuna
Joined: Jan 2001
Posts: 59,184 Likes: 3 |
The simple truth is that if you want a more honest Gov't, you've got to cut down on it's powers. At this point, I'm all for getting RID of it..
Ex- USN (SS) '66-'69 Pro-Constitution. LET'S GO BRANDON!!!
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Joined: Dec 2003
Posts: 17,240 Likes: 2
Campfire Ranger
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Campfire Ranger
Joined: Dec 2003
Posts: 17,240 Likes: 2 |
Hard to believe a bunch of millionaires would lie, cheat and steal, ain't it?
Maybe they just needed a tax cut. You can't be too nice to a job provider.
Sycamore
...Actually Sycamore, you are sort of right....
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Joined: Oct 2005
Posts: 1,065
Campfire Regular
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Campfire Regular
Joined: Oct 2005
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It doesn't say or matter really but I wonder what party affiliation these people have.
"I hate rude behaviour in a man .....I won't tolerate it." Capt. Woodrow F. Call (Tommy Lee Jones) The Movie "Lonesome Dove"
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Joined: Sep 2007
Posts: 4,858
Campfire Tracker
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Campfire Tracker
Joined: Sep 2007
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100 million is chickenfeed compared to the money stolen/wasted in Medicare/Medicaid....
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Joined: Mar 2004
Posts: 12,807
Campfire Outfitter
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Campfire Outfitter
Joined: Mar 2004
Posts: 12,807 |
Who said they were a bunch of millionaires?
Most of the farmers I know are hard pressed to pay bills. Sure, they might have a million in land, but that doesn't put shoes on the children.
You can sure learn a lot of bullshit at Huffpo.
Islam is a terrorist organization.
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Joined: Mar 2007
Posts: 9,214 Likes: 3
Campfire Outfitter
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Campfire Outfitter
Joined: Mar 2007
Posts: 9,214 Likes: 3 |
Mot of the farmers I know are broke if you ask them too.....of course, the three new leather loaded dualies out front and the Lexus in the garage.....the turbo snowmobiles and razr in the shed for checking crops......makes it kinda tough to sleep at night.
I would not buy something that runs on any kind of primer given the possibility of primer shortages and even regulations. In fact, why not buy a flintlock? Really. Rocks aren't going away anytime soon.
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Joined: Aug 2002
Posts: 19,134 Likes: 5
Campfire Ranger
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Campfire Ranger
Joined: Aug 2002
Posts: 19,134 Likes: 5 |
Most of the farmers I know are hard pressed to pay bills. Sure, they might have a million in land, but that doesn't put shoes on the children. The ones that I know may be hard pressed to pay the bills but they sure don't live like it. They blow and go until bankruptcy hits. miles
Look out for number 1, don't step in number 2.
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Joined: May 2011
Posts: 1,558
Campfire Regular
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Campfire Regular
Joined: May 2011
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Mot of the farmers I know are broke if you ask them too.....of course, the three new leather loaded dualies out front and the Lexus in the garage.....the turbo snowmobiles and razr in the shed for checking crops......makes it kinda tough to sleep at night. One of the big reasons farmers have a lot of " stuff" is because of the tax code. You either buy more equipment or pay a crapload of taxes. Let's see...pay BHO 10K or buy a 4-wheeler....that's a tough one...It's the system that congress has set up... That being said, some farmers do cheat on their insurance. They need to be hooked up by all 4 limbs to 4020's and pulled apart. Makes my rates go up and that p*sses me off! Personally I think the whole program should be done away with.It's time to let everybody sink or swim.
Cowardice is the greatest pandemic that has ever affected mankind.
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Joined: Aug 2002
Posts: 19,134 Likes: 5
Campfire Ranger
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Campfire Ranger
Joined: Aug 2002
Posts: 19,134 Likes: 5 |
One of the big reasons farmers have a lot of " stuff" is because of the tax code. You either buy more equipment or pay a crapload of taxes. Does that include ski trips or hunting trips to Canada? Don't get me wrong, if you want to do that stuff, fine, but don't cry about how tough times or, or expect me to furnish you farmers welefare. miles
Look out for number 1, don't step in number 2.
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Joined: Mar 2007
Posts: 9,214 Likes: 3
Campfire Outfitter
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Campfire Outfitter
Joined: Mar 2007
Posts: 9,214 Likes: 3 |
Don't get me wrong, I would rather see my neighbors (farmers) get it than some [bleep] city dweller. The farmers around here all seem to be more than welcome to help me out with trespass rights whenever I ask....but it cracks me up to hear the "I'm broke" story with a quarter mil worth of new luxury sitting in the shop.
I would not buy something that runs on any kind of primer given the possibility of primer shortages and even regulations. In fact, why not buy a flintlock? Really. Rocks aren't going away anytime soon.
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Joined: Mar 2007
Posts: 9,214 Likes: 3
Campfire Outfitter
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Campfire Outfitter
Joined: Mar 2007
Posts: 9,214 Likes: 3 |
.......and the "gotta go to Saskatchewan to observe their soil conservation techniques" every November.
I would not buy something that runs on any kind of primer given the possibility of primer shortages and even regulations. In fact, why not buy a flintlock? Really. Rocks aren't going away anytime soon.
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Joined: Apr 2004
Posts: 3,883
Campfire Tracker
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Campfire Tracker
Joined: Apr 2004
Posts: 3,883 |
Hard to believe a bunch of millionaires would lie, cheat and steal, ain't it?
Maybe they just needed a tax cut. You can't be too nice to a job provider.
Sycamore Don't be naive. People lie, cheat and steal. Not just rich people, poor people, men, women, black or white. When there is a government entity there with a program to "help" or facilitate something it allows for fraud and corruption. Doesn't matter what party. People are there willing to take advantage. Like has been pointed out is the medicare/medicaid fraud that Obama said they would get rid of to help pay for Obamacare, yet we haven't heard anything about getting rid of the fraud since it was brought up. In fact a larger govt program just allows for more fraud and inside deals. This isn't a new phenomenon. It has been going on since the advent of gov't. Read Nothing Like It In the World. It is about the building of transcontinental railroad. Corruption was a large part of the story.
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Joined: Dec 2009
Posts: 10,653
Campfire Outfitter
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Campfire Outfitter
Joined: Dec 2009
Posts: 10,653 |
You guys that are pissing and moaning about the farmers, does this look like I am screwing the pooch? My banker and CPA tell me no worries, I am land rich. I invite you to walk in my shoes.
Last edited by roundoak; 03/12/13.
You're Welcome At My Fire Anytime
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Joined: Jul 2004
Posts: 13,250
Campfire Outfitter
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Campfire Outfitter
Joined: Jul 2004
Posts: 13,250 |
Hard to believe a bunch of millionaires would lie, cheat and steal, ain't it?
Maybe they just needed a tax cut. You can't be too nice to a job provider.
Sycamore It's not just millionaires. For years a local would plant his crops and then plant with no fertilizer. When his crops failed he would collect the insurance. He was no millionaire, just one of two brothers who lived about a mile from me. He wouldn't plant many acres but he'd pull that every year. In my career as an insurance agent I couldn't begin to count the fraudulent claims I uncovered. The insureds would pull stuff like that and then talk about "those crooked insurance companies."
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Joined: Aug 2003
Posts: 19,825 Likes: 3
Campfire Ranger
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Campfire Ranger
Joined: Aug 2003
Posts: 19,825 Likes: 3 |
Roundoak, You MUST be cheating the system, heck, I can see tread on them tractor tires! If you were really broke, they would be slicker than Bill Clinton! The farmers and ranchers I know aren't wealthy, nor have barns full of new equipment. They buy used equipment at auctions and do most of the repair work themselves just to keep costs down. Land rich? Yeah, I guess so, but having $1 Million worth of land doesn't pay the light bill, put food on the table, OR pay for input costs. My hat is off to the men and women in this country who farm and ranch. Just like any other group, there are thieves, liars, and cheats. As to another poster's question about political affiliation, my guess is that most of them are Democrats, since that is what most folks in NC are and have been for decades. That is changing as they are "old school" Democrats, who look, spend, and talk more like modern Republicans. Ed
"Not in an open forum, where truth has less value than opinions, where all opinions are equally welcome regardless of their origins, rationale, inanity, or truth, where opinions are neither of equal value nor decisive." Ken Howell
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Joined: Feb 2009
Posts: 11,924
Campfire Outfitter
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Campfire Outfitter
Joined: Feb 2009
Posts: 11,924 |
Now it will swing the opposite way and farmers will not be able to get help when they truly need it.
The tax code is what it is and you play by it's rules.
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Joined: Aug 2005
Posts: 43,792 Likes: 4
Campfire 'Bwana
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Campfire 'Bwana
Joined: Aug 2005
Posts: 43,792 Likes: 4 |
Got a whole lot of relatives that farmed, grandfathers, uncles, cousins. Few did very well, few lost their shirts, most got by. They all worked their butts off.
The ones planting corn now with irrigation and the price of gas so high are raking it in.
“ The Savage 99 Pocket Reference”. All models and variations of 1895’s, 1899’s and 99’s covered. Also dates, checkering, engraving.. Find at www.savagelevers.com
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