Two farmers admit guilt in crop insurance fraud
Published 3:28 pm Tuesday, August 2, 2016
Two Allen County farmers pleaded guilty in United States District Court on Tuesday to a single charge each of crop insurance fraud.
The two are responsible for falsely claiming losses of more than $1 million each, according to a press release from the U.S. Attorneys Office.
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According to the separate plea agreements, David Manion, 53, and Henry Manion, 48, aided and abetted by others, admitted to knowingly making false statements and reports on applications for insurance. Both defendants made false statements for the purpose of obtaining insurance payments from the Federal Crop Insurance Corporation and Producers Agriculture Insurance Company, a company insured by the Federal Crop Insurance Corporation.
David Manion also had crop insurance provided by Rural Community Insurance Services , a company insured by the Federal Crop Insurance Corporation.
The violations by Henry Manion occurred between Aug. 10, 2009, and Feb. 14, 2012, in Allen and Simpson counties.
The violations by David Manion occurred between Aug. 25, 2009, and Feb. 7, 2012, in Allen, Simpson and Warren counties. At all relevant times, their tobacco crops were covered by companies insured by the FCIC.
According to the plea agreement, David Manion had eight separate tobacco crop insurance policies on eight different crops. David Manion, aided and abetted by others, admitted to intentionally overstating crop damage for each crop on a crop insurance claim, resulting in a loss of $1,133,498.
According to a separate plea agreement, Henry Manion had five separate tobacco crop insurance policies on five different crops. Henry Manion, aided and abetted by others, admitted to intentionally overstating crop damage for each crop on a crop insurance claim form, resulting in a loss of $1,104,087.
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According to the terms of the plea agreements, at sentencing the United States agrees to recommend a sentence for both defendants at the lowest end of the sentencing guideline range and each defendant will be required to make full restitution to the FCIC. If convicted at trial, Henry Manion and David Manion each faced a maximum prison term of 30 years and a maximum fine of $1,000,000.