Warren Fraud Scheme Funds Forest Land Grab

ASHEVILLE, N.C. – A slice of North Carolina wilderness is now protected thanks to the fallout from a brazen crop insurance fraud orchestrated by Robert and Viki Warren. U.S. Attorney Jill Westmoreland Rose announced today the addition of 177 acres to the Pisgah National Forest, a direct result of federal collection efforts stemming from the 2003 prosecution of the Warrens and their co-conspirators. The land, dubbed the “Hoot Owl Tract,” represents a partial recovery of millions stolen from taxpayers.

The Warrens weren’t stealing from banks, they were stealing from the American farmer – and ultimately, the American public. The couple and others ran a massive scheme involving fraudulent crop damage claims through their operation, Warren Farms. The Federal Crop Insurance Corporation, administered by the U.S. Department of Agriculture (USDA), was fleeced for millions after the Warrens falsely reported tomato damage, lining their pockets with taxpayer dollars. The court ultimately sentenced the Warrens for their role in the scheme, ordering them to pay $9,150,603 in restitution to the USDA, plus a $7.3 million forfeiture money judgment representing the proceeds of their criminal enterprise.

But getting the money back proved a fight. For years, federal investigators tracked the Warrens’ assets. In 2015 and 2016, law enforcement zeroed in on the Hoot Owl Tract, owned by the couple through a shell company, Mountaintop Farms, LLC. A lengthy negotiation followed, culminating in an agreement for the transfer of the land to the USDA, facilitated by the Carolina Mountain Land Conservancy (CMLC). This transfer serves as partial satisfaction of the restitution and forfeiture ordered by the court. It’s a rare instance where a criminal penalty directly translates into environmental preservation, but don’t mistake it for charity – it’s about accountability.

The Hoot Owl Tract isn’t just scenic acreage; it’s a vital ecosystem. The land contains trout waters and tributaries feeding into the Mills River, a critical source of drinking water for residents of Henderson and Buncombe Counties. Protecting this land isn’t just about scenic views, it’s about protecting public health. The deal ensures these vital resources are shielded from development and preserved for future generations, a small silver lining in a case built on deception and greed.

U.S. Attorney Rose praised the collaborative effort, specifically highlighting the work of the U.S. Forest Service and the CMLC. The Civil Division of the U.S. Attorney’s Office handled the forfeiture action, while Assistant U.S. Attorneys Richard Edwards and Don Gast led the initial criminal prosecution of Robert and Viki Warren. This case serves as a stark reminder that even years after the crime, the long arm of the law – and the USDA – can reach into the mountains to reclaim what was stolen.

While the recovery of $9.15 million plus the land represents a significant win for the government, it doesn’t erase the damage done. The Warrens’ fraud undermined a vital program designed to support farmers, and their actions had ripple effects throughout the agricultural community. The Hoot Owl Tract now stands as a testament to the fact that crime doesn’t pay – eventually.

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