A Kentucky tobacco warehouse manager at the center of a lo
ng-running crop fraud insurance scheme has agreed to pay millions i
n reform for his role in enabling the fraud.
Thomas Kirkpatrick, of Danville, pleaded guilty last week to consp
iracy to commit money laundering by providing paperwork to farmer
s, purporting to show they purchased tobacco from the warehouse
from 2014 through 2020, according to court documents and local news reports.
In reality, Kirkpatrick reimbursed the farmers – minus a fee for himself. The tobacco raisers then use the security checks
d invoices to claim decreased production and losses on their federal crop insurance, advocates said.
“It was the purpose of the conspiracy to profit from generating false documentation that made it appear as th
ough farmers purchased tobacco they actually produced from Farmers Tobacco Warehouse, which the farm
ers then submitted to their insurance adjusters in order to decrease
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their production reported to the FCIC, leading to inflate insurance indemnity payments,” reads Kirkpatrick’s March 25 indictment.
At least three of the farmers have confessed guilty so far. Kirkpatrick struck a plea agreement with journalists
t week. He will be jointly and severally responsive
e for the $16.1 million in reform, along with six other defendants, the agreement notes.
He is set for judgment on Oct. 14 in federal court in Lexington. In addition to the millions in reform, Kirkpat
Rick faces fines and up to 20 years in prison, the Lexington Herald-Leader reported.