Kingsport Times News Thursday, October 30, 2014

Crime Local News

Limestone man sentenced to 51 months for trying to defraud USDA

February 25th, 2014 9:22 pm by Matthew Lane

Limestone man sentenced to 51 months for trying to defraud USDA

GREENEVILLE — The ringleader of a scheme to defraud the U.S. Department of Agriculture of $178,000 through false crop insurance claims has been sentenced to slightly more than four years in federal prison.

Glenn Martin Jr., 66, of Limestone, was sentenced to 51 months in prison earlier this month in U.S. District Court in Greeneville. Judge Ronnie Greer also sentenced Martin to three years of supervised release and ordered him to pay $888,715 in restitution — $178,515 to the USDA and $710,000 to the U.S. Bankruptcy trustee.

Martin, his ex-wife, Janet Garland, of Unicoi, and her brother Joseph Matchett, of Washington County, were involved in the scheme and indicted in November 2012, charged with conspiracy and submitting false crop insurance claims. Martin also faced a charge of concealing assets during bankruptcy.

All three agreed to plead guilty to the conspiracy charge and Martin also agreed to plead guilty to the concealing assets charge. In August, Matchett received four years probation and was ordered to pay $178,515 in restitution for his role in the scheme.

According to court records, Martin arranged for Garland and Matchett to become tobacco producers in 2009 and agreed to finance all of the farm’s expenses, including obtaining crop loss insurance through the Rural Community Insurance Service. Crop loss insurance is provided for under federal law and is meant to cover crop losses due to drought, flood or other natural disaster.

From March 2009 through April 2010, the three defendants made false statements and reports to the RCIS for losses that were not eligible for crop insurance.

Under the direction of Martin and Garland, Matchett applied for and received crop loss insurance on 73 acres of land in Washington County, falsely claiming he was the tobacco farmer on the property.

Matchett then submitted a report with the RCIS claiming he had planted tobacco at the Tipton, Clinic, Gary Stout and Mitchell farms, when he had not. In October 2009, Matchett filed paperwork claiming the crop was destroyed by severe weather.

In April 2010, the RCIS approved the claim and paid Matchett slightly more than $178,500. Over the course of a month, Martin and Garland paid Matchett $15,000 for his role in the scheme, in three increments of $5,000 each.

Since 1999, Martin has owed the United States more than $20 million in civil federal tobacco penalties. That judgment is a result of Martin concealing ownership of and participation in tobacco production in an attempt to evade federal income taxes.

To avoid payment of that debt and to continue earning income from farming, prosecutors say Martin arranged for his businesses to be operated in the names of other people, specifically Matchett.

Martin attempted to have the tobacco penalties removed by filing for bankruptcy in 1999, but in 2001 the bankruptcy court ruled the penalties were exempt. In 2008, the United States seized Martin’s assets in order to collect on the debt, but Martin filed for bankruptcy again in an attempt to stop the proceedings. During the bankruptcy proceedings, prosecutors say Martin fraudulently collected $700,000.

Court records state Martin was deposed in an adversary proceeding in his bankruptcy case and falsely denied the scheme to defraud the U.S. government with the false crop loss insurance.

comments powered by Disqus