A Casey County, Kentucky, man has pleaded guilty to his role in a conspiracy to defraud the Farm Credit Administration by concealing the sale of grain to unauthorized purchasers. Timothy R. Jaynes, 51, pled guilty to one count of a criminal information charging him with converting assets pledged to the Farm Credit Administration.
According to the plea agreement, in July of 2012, Christopher S. Fair, 38, of Liberty, Kentucky, allegedly obtained loans from Central Kentucky Agriculture Credit and secured these loans with the proceeds of grain sales. CKAC is a subsidiary of the Farm Credit Administration. Under the loan terms, Fair was only authorized to sell his grain to certain purchasers, and sale proceeds were to be remitted to CKAC to pay off the loan balances.
Between July 2012 and October 29, 2013, without CKAC’s knowledge or approval and with the intent to defraud CKAC, Fair is alleged to have intentionally sold grain to unauthorized purchasers, and transferred the proceeds of those sales to bank accounts under his own control and the control of others, who agreed to give Fair access to the funds. Jaynes was Fair’s friend and agreed to establish FJ Holdings and opened an FJ Holdings bank account for Fair to hide assets from creditors and to allegedly deposit grain sale proceeds and conceal those proceeds.
Jaynes admits to subsequently sharing with Fair, the proceeds deposited into the FJ Holdings account. If convicted at trial, Jaynes could be sentenced to a five-year maximum term in prison, pay a $500,000 fine, and be sentenced to serve a three-year period of supervised release. At the time of sentencing, Jaynes agrees to pay restitution in the amount of $50,000 to the Farm Service Agency.
Jaynes is scheduled for sentencing before Judge Greg N. Stivers on July 6, 2017, in Bowling Green. This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Farm Credit Administration. The guilty plea is a result of the ongoing efforts of the U.S. Attorney’s Office to combat fraud and protect the integrity of federal programs.
The Farm Credit Administration is a vital part of the agricultural economy, providing loans and credit to farmers and ranchers across the country. The actions of Jaynes and Fair undermine the integrity of this system and put the entire agricultural community at risk. The U.S. Attorney’s Office will continue to work tirelessly to root out fraud and corruption, and to bring those responsible to justice.
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Key Facts
- State: Kentucky
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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