Lexington, Kentucky, December 26, 2025
In a significant crackdown on fraud, seven farmers and a warehouse manager in Kentucky have been sentenced to prison for a multi-million dollar crop insurance fraud scheme. The fraudulent activities, spanning from 2014 to 2019, involved falsifying crop loss claims related to burley tobacco production, resulting in nearly $10 million in losses to insurers. Sentences ranged from time served to 52 months in federal prison, along with substantial restitution orders. This case highlights ongoing efforts by federal authorities to combat similar fraud in the agricultural sector.
LEXINGTON, Ky. — Seven Farmers and Warehouse Manager Sentenced in Kentucky Crop Insurance Fraud Scheme
Seven farmers and a warehouse manager in Kentucky have received prison sentences for their involvement in a multi-million dollar crop insurance fraud that resulted in nearly $10 million in losses to insurers. The fraudulent activities, which occurred from 2014 to 2019, included the submission of falsified crop loss claims for burley tobacco production, leading to inflated insurance payouts.
Details of the Sentences
- Larry Walden, 69, of Cave City: Sentenced to 52 months in federal prison for conspiracy to commit money laundering, with a restitution order of $9,960,817.19 and three years of supervised release following incarceration.
- Thomas Kirkpatrick, 67, of Stanford: Former manager of Farmers Tobacco Warehouse, received 48 months in prison, ordered to pay $16,156,345 in restitution, and will serve two years of supervised release.
- David Hunt, 63, of Campbellsville: Sentenced to 42 months in prison with three years of supervised release and a restitution amount of $5,427,365.
- Terry Wilson, 67, of Edmonton: Received time served, followed by three years of supervised release, and was ordered to pay $667,679 in restitution.
- Christopher Wilson, 50: Sentenced to 18 months in prison, three years of supervised release, and $669,447 in restitution.
- David Wisdom, 69, of Glasgow: Sentenced to 48 months in federal prison, three years of supervised release, and a $1,941,007 restitution requirement.
- Robert D. Birge Jr., 51, of Summer Shade: Sentenced to six months in prison, followed by three years of supervised release, and must pay $1,114,519 in restitution.
- Harlan Ray Highfield, 63, of Brooksville: Previously sentenced to 42 months in prison, three years of supervised release, and $1,060,460 in restitution for related fraud.
Background of the Scheme
From 2014 to 2019, the defendants collaborated to submit false documentation to support fraudulent crop insurance claims linked to burley tobacco. They utilized services at Farmers Tobacco Warehouse in Boyle County to create fictitious evidence, including fake tobacco purchase receipts, which were employed to justify lower production figures for greater insurance payouts. The total loss incurred by crop insurers from this fraudulent operation was approximately $9,960,817.19. Per federal law, defendants must serve at least 85% of their prison sentences.
Statements from Authorities
Federal authorities characterized the fraud as severe, emphasizing that it exploits programs designed to assist honest farmers. The sentences handed down serve as a warning against similar fraudulent activities within the agricultural community.
Related Cases
This case is part of a larger initiative to combat crop insurance fraud in Kentucky. In recent years, several individuals related to similar fraud schemes have been sentenced to lengthy prison terms and imposed restitution, reinforcing the federal commitment to uphold the integrity of agriculture programs.
Frequently Asked Questions (FAQ)
What was the nature of the crop insurance fraud scheme in Kentucky?
The scheme involved seven farmers and a warehouse manager who falsified crop loss claims related to burley tobacco production between 2014 and 2019. They used false documentation to support fraudulent claims, resulting in nearly $10 million in losses to crop insurers.
What were the sentences for the individuals involved?
The sentences varied based on the individual’s role and involvement in the scheme. For example, Larry Walden, 69, was sentenced to 52 months in federal prison and ordered to pay restitution of $9,960,817.19. Other individuals received sentences ranging from time served to 48 months in prison, along with supervised release and restitution orders.
How did the fraud scheme operate?
The defendants collaborated to submit false documentation supporting fraudulent crop insurance claims. They used services at Farmers Tobacco Warehouse in Boyle County to create fictitious records, such as fake tobacco purchase receipts, to justify lower production figures and secure higher insurance payouts.
What are the broader implications of this case?
This case is part of a broader effort to address crop insurance fraud in Kentucky. Previous cases have resulted in significant prison sentences and restitution orders, highlighting the ongoing efforts by federal authorities to combat such fraud and protect the integrity of agricultural programs designed to support farmers.
Key Features of the Case
| Feature | Details |
|---|---|
| Location | Lexington, Kentucky |
| Defendants Involved | Seven farmers and one warehouse manager |
| Duration of Fraud | 2014 to 2019 |
| Total Losses to Crop Insurers | Nearly $10 million |
| Sentences Imposed | Prison terms ranging from time served to 52 months, supervised release, and restitution orders totaling over $30 million |
| Related Cases | Previous cases involving similar fraud schemes in Kentucky, resulting in significant prison sentences and restitution orders |
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