Fargo, ND – A ruthless plot to swindle the government out of millions has resulted in a severe blow for Aaron A. Johnson and Derek M. Johnson, who were sentenced this week. The brothers, potato farmers from Northwood, ND, have been found guilty of conspiracy to commit fraud on federal crop insurance and disaster programs.
On March 9, 2015, U.S. District Judge Ralph R. Erickson handed down sentences for the two, with Aaron receiving four years and Derek being sentenced to 18 months in prison. Their crime was meticulously planned: deliberately damaging potato crops to secure federal indemnities and disaster benefits over several years.
The Johnsons’ deceptions began with poisoning their seed potatoes during planting, followed by a series of deliberate acts that included neglecting growing crops and destroying stored potatoes. They used chemicals like Rid-X and Flush on their seeds before planting, destroyed potatoes with cultivator equipment, and left fields unharvested. Their scheme was so elaborate that it even involved adding frozen potatoes to storage heaps and heating them to control rot.
Assistant U.S. Attorneys Clare Hochhalter and Nick Chase led the prosecution of the brothers. The investigation into their fraudulent activities was a joint effort by the United States Department of Agriculture and the Risk Management Agency (RMA). As punishment, in addition to prison terms, Judge Erickson sentenced them to five years supervised release and ordered restitution and forfeiture of $932,000.
The Johnsons’ operation received millions in federal benefits, including crop insurance indemnities, subsidized premiums, and disaster relief. The sentencing marks a significant victory for justice, as the brothers are now facing the consequences of their deceptive farming practices.
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Key Facts
- State: North Dakota
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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