Tobacco Farmer’s False Federally Insurance Claims Go Up in Smoke
Christopher Hickerson, a tobacco farmer in Kentucky, was found guilty of crop insurance fraud and tax fraud.
From 2009 to 2016 Hickerson filed false claims of loss on his Multi-Peril Crop Insurance policies. These policies are federally sponsored and funded with taxpayer money.
Hickerson got the owner of a tobacco warehouse to give him fake sales receipts and grading reports that made it appear as if he was producing and selling poor quality tobacco. He then submitted these on his loss claims. As a result, he caused the insurance program a loss of almost one million dollars.
Hickerson also admitted that he underreported his income in 2012, 2013 and 2015, causing the IRS a loss of more than $150,000.
He was sentenced to 66 months in prison and under federal law must serve 85% of his sentence.
About the Author
Gregory McCauley Jr., Esq.
Tax Attorney · Villanova University School of Law · Admitted in Delaware, New Jersey, United States Tax Court
Gregory McCauley Jr. is an experienced tax attorney who has personally represented more than 1,000 clients in matters ranging from civil tax controversy and IRS examinations to criminal tax defense, U.S. Tax Court litigation, and complex business disputes. His practice is built on a foundation his c...
