News and Press Releases

FOR IMMEDIATE RELEASE:

MONDAY - March 21, 2011

TOBACCO FARMER PLEADS GUILTY IN CROP INSURANCE FRAUD SCHEME

RALEIGH - United States Attorney George E.B. Holding announced that in federal court today TIMOTHY ALTON STANCILL, 49, of Ayden, North Carolina, pled guilty before United States District Judge James C. Dever III, to the making of false statements in connection with the federal crop insurance program, in violation of Title 18, United States Code, Section 1014 and making material false statements, in violation of Title 18, United State Code, Section 1001.

A Criminal was filed on February 23, 2011.

During the course of the investigation, it was determined that STANCILL filed false multi-peril crop insurance claims and crop disaster payment claims. With respect to the claims, STANCILL misrepresented his tobacco production to secure the monies fraudulently. Specifically, STANCILL sold some of his tobacco through Mark Pridgen, a previously indicted co-conspirator, was paid in cash, and failed to disclose the sale in his indemnity claims. STANCILL also paid a bribe to an adjuster so that his losses were falsely inflated, thereby increasing the amount of money he collected in connection with federal indemnity claims. Therefore, he applied for and received federal crop disaster payments based upon a false production history.

At sentencing, set for the July 5, 2011, term of court, STANCILL faces up to 30 years’ imprisonment for making false statements in connection with the crop insurance program and up to five years’ imprisonment for making material false statements. Also, as stipulated in the plea agreement, STANCILL has agreed to pay restitution to the United States Department of Agriculture, Risk Management Agency and the Farm Service Agency, in the amounts of $196,189 and $34,113, respectively, and to Rural Community Insurance Services in the amount of $36,885.

Investigation of this case was conducted by the United States Department of Agriculture, Office of the Inspector General, Risk Management Agency, Special Investigations Branch, and the Internal Revenue Service, Criminal Investigation Division. Assistant United States Attorney Banumathi Rangarajan, who is assigned to the officer’s Economic Crimes Unit, represented the government.

News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.

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