An ambulance is stuck in over a foot of snow off of Highway 33 West, near Belington, W.Va. on Tuesday, Oct. 30, 2012, in Belington, W.Va. Superstorm Sandy buried parts of West Virginia under more than a foot of snow on Tuesday, cutting power to at least 264,000 customers and closing dozens of roads. At least one death was reported. The storm not only hit higher elevations hard as predicted, communities in lower elevations got much more than the dusting of snow forecasters had first thought from a dangerous system that also brought significant rainfall, high wind gusts and small-stream flooding. (AP Photo/Robert Ray)
Feds bust up $100M NC crop insurance fraud ring
Published: 12:31:13 PM, Tue 12 March 2013 UTC
RALEIGH, N.C. (AP) — Federal authorities in North Carolina have unraveled a massive criminal conspiracy they say defrauded $100 million from the government-backed program that insures farmers against crop losses.
Prosecutors say the scheme is the largest of its kind uncovered in the country: 41 insurance agents, claims adjusters, crop brokers and farmers have pleaded guilty or reached plea agreements so far. The defendants have been sentenced to pay $43 million in fines and restitution, as well as years in prison.
The ring filed false insurance claims for weather-related loses of tobacco, soybeans, wheat and corn. Often, the crops weren't damaged at all, with farmers later selling their written-off harvests under false aliases.
Prosecutors say those abusing the system make it harder on honest farmers by increasing the cost of insurance premiums.
Tags:
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