LAFAYETTE, La. – In a brazen case of Hurricane Rita relief fraud, a group of Louisiana livestock producers have agreed to pay $255,000 in damages after being accused of making false claims to obtain disaster payments.
The settling parties, Carl Trahan, Melissa Trahan, the Estate of Ernie Little, Thad Little, Stacy Little, T.L. Cattle Co., and Little Cattle Co., submitted false statements and claims to the U.S. Department of Agriculture’s Farm Service Agency (FSA) to qualify for and receive 2005 Livestock Indemnity Program (LIP) payments.
The Livestock Indemnity Program provided payments to livestock producers for livestock deaths resulting from natural disasters like Hurricane Rita. However, producers were required to submit documentation to the FSA office to prove that the death of the eligible livestock occurred in an eligible parish as a direct result of an eligible hurricane.
Beginning in June 2006, the settling parties made statements and claims to the FSA to obtain LIP payments which the United States contends were false or fraudulent.
“The federal government set up a program to help livestock producers who sustained significant losses during natural disasters,” U.S. Attorney Stephanie A. Finley stated. “It is unfortunate that there are people who misuse these programs, but they should understand that such conduct will not be taken lightly in this District.”
The U.S. Department of Agriculture (USDA), Office of Inspector General, investigated the case. Assistant U.S. Attorney Karen J. King and Affirmative Civil Enforcement Investigator Christopher Knighton handled the civil case.
The claims resolved by this settlement are allegations only and there has been no determination of liability. If you witness or have knowledge of any violations of laws and regulations related to USDA programs, contact the OIG Hotline by telephone at (800) 424-9121 or TDD (202) 690-1202, or by email at usda.hotline@oig.usda.gov.
U.S. Attorney Finley’s office is committed to protecting the integrity of federal programs and holding accountable those who seek to exploit them for personal gain. This case serves as a reminder that those who engage in such conduct will be held accountable for their actions.
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Key Facts
- State: Louisiana
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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