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Press Release

Tabor City Man Pleads Guilty In Crop Insurance Fraud Case

For Immediate Release
U.S. Attorney's Office, Eastern District of North Carolina

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today PATRICK REX LOVETT, 48, of Tabor City, North Carolina, pled guilty before Chief United States District Judge James C. Dever III, to structuring transactions to evade reporting requirements, in violation of Title 31, United States Code, Sections 5324(a)(3) and (d)(2).

According to the Criminal Information filed on November 26, 2012, and information presented in open court, LOVETT, a farmer and President of Lovett Farms, structured currency transactions with one or more domestic financial institutions for the purpose of evading the legal obligation to report currency transactions in excess of $10,000. From October 8, 2008, through September 14, 2009, LOVETT cashed 22 checks totaling over $160,000. Each check was issued in amounts less than $10,000, and some of the checks were tied to tobacco sales.

At sentencing, set for the May 20th, 2013, term of court, LOVETT faces up to 10 years imprisonment followed by up to 3 years of supervised release and a fine of $500,000.

This case is part of the ongoing investigation of the multi-million dollar crop insurance fraud in the Eastern District of North Carolina.

The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General – Investigations, the United States Department of Agriculture - Risk Management Agency – Special Investigations Branch, and the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.

Updated July 14, 2015