Adjusters, Agent Involved In Kentucky Crop Insurance Fraud Scheme

An insurance agent took cash kickbacks as part of a scheme with farmers to file false claims of crop damage, a federal grand jury has charged.

The grand jury in Lexington indicted Michael McNew on one charge of conspiracy to commit mail fraud and wire fraud and five counts of wire fraud.

Those five charges accuse him of sending false applications and reports to insurance companies.

McNew allegedly worked with others to defraud the federal government, which backs insurance policies for farmers, and ARMtech Insurance Services, a private company.

McNew submitted crop-insurance applications for farmers raising tobacco, corn and soybeans that had false information and submitted loss claims that lied about the amount of damage, according to the indictment.