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Guilty Pleas in Kentucky Tobacco Crop Insurance Fraud Ring
Kentucky Ag Connection - 06/07/2023

James McDonald and Cheryl Lynn Noble, a Kentucky farmer and his sister-in-law, have pleaded guilty in a multi-year scheme to defraud the Federal Crop Insurance Corp. and its reinsured companies.

The guilty pleas were entered last month, and sentencing for McDonald and Noble is scheduled for September 7th. It is speculated that the two may cooperate as witnesses against Noble's brother, Randall Taulbee, who has pleaded not guilty to the $700,000 fraud scheme and is set to face trial on June 26th.

According to court documents, McDonald worked with Taulbee and an unnamed insurance agent from 2013 to 2017 to falsify crop insurance policies in their names. The fraudulent operation involved overreporting insured acreage, submitting false records on supplies, and falsely claiming hail damage. Additionally, profits from corn sales were concealed under McDonald's son's name, resulting in larger insurance payouts.

The insurance fraud scheme is part of a larger issue affecting tobacco crops in central Kentucky over the past few years. Multiple individuals associated with the tobacco operation have already been convicted or pleaded guilty in related prosecutions.

Sentences for McDonald and Noble could exceed five years in prison, with McDonald potentially having to pay over $458,000 in restitution.

The guilty pleas mark a significant step in addressing the widespread crop insurance fraud and holding those involved accountable for their actions.


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