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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of Kentucky

FOR IMMEDIATE RELEASE
Monday, March 20, 2017

Casey County, Kentucky, Man Guilty Of Defrauding The Farm Credit Administration Through Sales Of Grain To Unauthorized Purchasers

BOWLING GREEN, Ky. –  A Casey County, Kentucky, man pled guilty today in United States District Court before District Judge Greg N. Stivers for his role in a conspiracy to defraud the Farm Credit Administration by concealing the sale of grain to unauthorized purchasers, announced United States Attorney John E. Kuhn, Jr.

Timothy R. Jaynes, 51, pled guilty to one count of a criminal information charging him with converting assets pledged to the Farm Credit Administration.

According to the plea agreement, in July of 2012, Christopher S. Fair, 38, of Liberty, Kentucky, (charged in a separate information) allegedly obtained loans from Central Kentucky Agriculture Credit and secured these loans with the proceeds of grain sales. CKAC is a subsidiary of the Farm Credit Administration.

Under the loan terms, Fair was only authorized to sell his grain to certain purchasers, and sale proceeds were to be remitted to CKAC to pay off the loan balances. Between July 2012 and October 29, 2013, without CKAC’s knowledge or approval and with the intent to defraud CKAC, Fair is alleged to have intentionally sold grain to unauthorized purchasers, and transferred the proceeds of those sales to bank accounts under his own control and the control of others, who agreed to give Fair access to the funds.

Jaynes was Fair’s friend and agreed to establish FJ Holdings and opened an FJ Holdings bank account for Fair to hide assets from creditors and to allegedly deposit grain sale proceeds and conceal those proceeds. Jaynes admits to subsequently sharing with Fair, the proceeds deposited into the FJ Holdings account.

If convicted at trial, Jaynes could be sentenced to a five-year maximum term in prison, pay a $500,000 fine, and be sentenced to serve a three-year period of supervised release.

At the time of sentencing, Jaynes agrees to pay restitution in the amount of $50,000 to the Farm Service Agency. Jaynes is scheduled for sentencing before Judge Stivers on July 6, 2017, in Bowling Green.

This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Farm Credit Administration.

Topic(s): 
Financial Fraud
Updated March 20, 2017