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Four Central Kentucky Farmers Plead Guilty to Crop Insurance Fraud
LEXINGTON, Ky. – Several Central Kentucky men, Roger Wilson, 88, Robert Livingood, 64, John Watkins, 49, and Morgan Wayne Culbertson, 33, pleaded guilty in federal court Monday, to charges related to crop insurance fraud.
Roger Wilson, former owner of Clay’s Tobacco Warehouse and current owner of Ag Wood, Inc., both in Mt. Sterling, Kentucky, pleaded guilty to conspiring to commit crop insurance fraud before U.S. District Judge Karen K. Caldwell. Wilson admitted that between September 2013 and May 2018, he arranged for farmers to purchase poor quality tobacco to present to tobacco graders, so the farmers could receive poor quality tobacco grades to report to on their federally-backed tobacco insurance (called multi-peril crop insurance or “MPCI”) claims of loss.
Robert Livingood, a farmer who owns and rents tobacco farmland in Bourbon, Fleming, Harrison, and Nicholas Counties, also pleaded guilty to conspiring to commit crop insurance fraud. Livingood admitted that, in Crop Year 2014, he submitted a false MPCI claim of loss, by submitting fake tobacco sales bills he obtained from Clays Tobacco Warehouse and underreporting the amount of tobacco production he had that year. As a result of his misrepresentations, Livingood caused a loss to the federal government of approximately $313,652.
John Watkins, a farmer who owns and rents tobacco farmland in Bath, Fleming, and Nicholas Counties, pleaded guilty to one count of conspiring to commit crop insurance fraud and one count of crop insurance fraud. In his plea agreement, Watkins admitted to failing to report his total tobacco production from Crop Years 2011 through 2014, which influenced the federal government to pay out sums of indemnity payments to which he was not entitled.
Morgan Wayne Culbertson, a farmer with tobacco farmland in Montgomery, Clark, and Bath Counties, also pleaded guilty today to a conspiracy to commit crop insurance fraud. According to his plea agreement, Culbertson underreported his crop production on his MPCI claims of loss, by, among other things, selling tobacco for cash at Clay’s Tobacco Warehouse and failing to report tobacco he sold in others’ names.
The cases are part of a larger investigation into crop insurance fraud in Central Kentucky. Previously, two other farmers, Jesse Smith and R. Chad Price, pleaded guilty to crop insurance fraud related offenses. On April 29, 2021, Jesse Smith, 56, pleaded guilty to committing crop insurance fraud. On May 5, 2021 Price, 39, pleaded guilty to conspiring to commit crop insurance fraud and tax evasion.
The defendants will face prison time and fines for their crimes. Roger Wilson is scheduled to be sentenced on [date]. Robert Livingood will be sentenced on [date]. John Watkins will be sentenced on [date]. Morgan Wayne Culbertson will be sentenced on [date].
Key Facts
- State: Kentucky
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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