Take note that the farmer in fact has a good quality crop, which he still needs to sell to a tobacco company. most farmers have contracts with large companies to deliver regular tobacco crops. these farmers want to maintain these valuable contracts.
To fulfill its contract with the tobacco company, the farmer needs to commit another fraud. He will show that he sold his poor-quality crop and purchased a good-quality crop, which was delivered to the tobacco company.
Whittington said farmers carried out the scam with the help of Clay’s Tobacco Warehouse employees including Debra Muse, who was also a crop insurance agent. Muse provided fake paperwork to show that farmers purchased quality tobacco from the warehouse.
The FBI Forensic Accountant noted, “When the farmers would take their tobacco to the warehouse to have it graded, they would need a NoG rating or a not salable rating. Muse would provide that documentation.”
Muse was the first among the defendants who pleaded guilty to encouraging assisting farmers to defraud crop insurance programs. She was sentenced to five years in prison in September 2018.
