Seven Farmers and a Tobacco Warehouse Manager Sentenced for Crop Insurance Fraud Scheme
The December 19, 2025, sentencing of Larry Walden is the final of several stemming from a large-scale insurance fraud investigation of Farmers Tobacco Warehouse in Danville, Ky.
LEXINGTON, Ky. /Monday, December 22, 2025 — A Cave City, Ky., farmer, Larry Walden, 69, was sentenced to 52 months’ incarceration by U.S. District Judge Karen Caldwell, after pleading guilty to conspiring to commit money laundering, by committing crop insurance fraud.
According to his plea agreement, Walden owned and rented farmland in Barren County, on which he grew burley tobacco, among other crops. He maintained insurance coverage over his tobacco crop from at least 2014 to 2023. For Crop Years 2014 through 2019, Walden used services offered at Farmers Tobacco Warehouse in Boyle County, to obtain false documentation to support false claims of loss on his crop insurance.
As part of the conspiracy, Walden wrote checks to Farmers Tobacco Warehouse, to make it appear as though the tobacco he raised and sold was actually purchased from Farmers Tobacco Warehouse. Conspiring with Thomas Kirkpatrick, manager at Farmers Tobacco Warehouse, Walden also received fake receipts in further attempts to conceal the scheme. Walden presented copies of these cancelled checks along with fake purchase receipts to his insurance adjuster. His insurance adjuster used this paperwork to justify deflating Walden’s production reports, thereby increasing his indemnity payment. With his proceeds, Walden paid off lines of credit and purchased new assets.
Walden also admitted to running the same fraud scheme through Greensburg Tobacco Market and Fair Deal Tobacco, located in Greensburg, Ky., and Littleton, North Carolina, respectively. He further sold tobacco under the names of neighbors and relatives without reporting that production on his insurance claims. In total, Walden’s fraud caused $9,960,817.19 in loss to crop insurers. Upon his release, Walden will be under the supervision of the U.S. Probation Office for 3 years. In addition to his prison sentence, Walden was ordered to pay $9,960,817.19 in restitution.
Other farmers have also been sentenced for their role in the same conspiracy to commit crop insurance fraud and have been sentenced as followed.
- Thomas Kirkpatrick, 67, of Stanford, Ky., the former manager of Farmers Tobacco Warehouse, was sentenced to 48 months in prison, two years of supervised release, and was ordered to pay $16,156,345 in restitution.
- David Hunt, 63, of Campbellsville, Ky., a farmer who obtained fake documentation from Kirkpatrick in order to support fraudulent claims to indemnity payments under an organic tobacco insurance coverage policy, was sentenced to 42 months in prison, three years of supervised release, and $5,427,365 in restitution.
- Terry Wilson, 67, an Edmonton, Ky, farmer who used Farmer Tobacco Warehouse to facilitate his fraud conspiracy, was sentenced to time served, followed by three years of supervised release, and was ordered to pay $667,679.00 in restitution.
- Christopher Wilson, 50, Terry Wilson’s son, was sentenced to 18 months in prison, three years of supervised release, and was ordered to pay $669,447 in restitution.
- David Wisdom, 69, a Glasglow, Ky., farmer who used Farmer Tobacco Warehouse to facilitate his fraud conspiracy, was sentenced to 48 months, followed by three years of supervised release, and was ordered to pay $1,941,007 in restitution.
- Robert D. Birge, Jr., 51, a Summer Shade, Ky., farmer, was sentenced to 6 months in prison, three years of supervised release, and was ordered to pay $1,114,519 in restitution.
Additionally, earlier this month, Harlan Ray Highfield, 63, of Brooksville, Ky., was sentenced to 42 months’ incarceration, stemming from his crop insurance fraud scheme that involved obtaining crop insurance policies in nominee names, among other offenses. He was sentenced to three years’ supervised release and was ordered to pay $1,060,460 in restitution.
Under federal law, these defendants must serve 85 percent of their prison sentences.
“These defendants fleeced programs intended to protect agricultural producers,” said Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky. “While the vast majority of farmers conduct themselves with great integrity, the sentences imposed in these cases should serve as a warning to any producers or warehouse operators considering similar crop insurance fraud.”
“There is no place in our society for opportunists who choose to defraud public programs at the expense of honest, hard-working American farmers,” stated Special Agent in Charge Olivia Olson of the FBI Louisville Field Office. “This case is a prime example of law enforcement partners collaborating over a number of years to ensure the conspirators are identified and penalized appropriately, while simultaneously working to protect one of our nation’s most vital industries.”
“The U.S. Department of Agriculture (USDA) Office of Inspector General (OIG) appreciates the collaboration with our law enforcement partners and the prosecutors in this case. USDA OIG is committed to investigating individuals who engage in crop insurance fraud in order to preserve the integrity of USDA programs,” said USDA OIG Special Agent-in-Charge Miles Davis. “We thank the United States Department of Agriculture Risk Management Agency Special Investigations Staff, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, Kentucky Department of Insurance and Department of Justice, Eastern District of Kentucky for their partnership with us on this impactful investigation.”
Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Miles Davis, Acting Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Olivia Olson, Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, jointly announced the sentences.
The investigation was conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency Special Investigations Staff, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation. The United States was represented by Assistant U.S. Attorneys Kate Dieruf and Andrea Mattingly Williams.
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Contact
CONTACT: Gabrielle Dudgeon
PHONE: (859) 685-4887
E-MAIL: gabrielle.dudgeon@usdoj.gov
Source: U.S. Attorney's Office, Eastern District of Kentucky
