Lamesa, Texas, Insurance Agent Sentenced to 15 Months in Federal Prison for Making False Statements to USDA Federal Crop Insurance Corp.

LUBBOCK, Texas — A Lamesa, Texas, man, Joel Thomas Napper, who did business as Agwest Insurance Agency, was sentenced on Friday by U.S. District Judge Sam R. Cummings to serve 15 months in federal prison, fined $4,000, and ordered to pay $124,246 in restitution to the U.S. Department of Agriculture (USDA) Federal Crop Insurance Corporation (FCIC).  The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.

Napper pleaded guilty in June 2015 to one count of making false statements to the USDA’s FCIC and Aiding and Abetting.  He must surrender to the Bureau of Prisons on October 16, 2015.  

According to documents filed in the case, Napper admitted that from approximately July 23, 2013, to August 26, 2013, he submitted false Acreage Reports (AR) on behalf of his policy holder clients, falsely representing that policy holders had timely signed the ARs enabling them to qualify for the FCIC program and receive federal crop insurance coverage, when, as Napper well know, the ARs were not timely signed and Napper forged them on behalf of his policyholder clients.

The investigation began in May 2014 after the USDA received information that Napper had made false statements by backdating ARs in order to provide multi-peril crop insurance coverage for his policyholders who were making claims on their 2013 cotton insurance policies.  Napper admitted that he had forged signatures and backdated ARs for at least 10 policyholders.  By transmitting the false statements, Napper caused a $124,246.00 sales commission paid to Agwest Insurance Agency.

The investigation was conducted by the USDA, Office of Inspector General and prosecuted by Assistant U.S. Attorney Paulina Jacobo.

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