Kentucky Farmer Pleads Guilty to Multi-Million Dollar Crop Insurance Fraud Scheme

In a significant development in federal court, David Manion, a farmer from Simpson County, has confessed to orchestrating a fraudulent scheme that defrauded the federal government’s crop insurance program out of millions of dollars. This marks Manion’s second conviction related to crop insurance fraud within ten years, highlighting a recurring pattern of deceitful activities aimed at exploiting agricultural support programs.

Manion’s recent admission of guilt stems from charges filed in November, accusing him of making false statements on crop insurance applications from 2016 to 2022. This fraudulent activity resulted in a staggering $3.5 million loss to the Federal Crop Insurance Corp., according to the plea agreement. The U.S. Attorney’s Office for the Western District of Kentucky is seeking a prison sentence and restitution totaling $3.5 million from Manion, alongside an additional $5,498,023 to settle other disputes.

This case is not Manion’s first encounter with the law over crop insurance fraud. In 2016, he was convicted for overstating damage to his tobacco crops across several counties, resulting in a sentence that included a day in custody, a $250,000 fine, and over $1 million in restitution. Despite a voluntary exclusion from U.S. Department of Agriculture farm programs following his previous conviction, Manion circumvented the restrictions through family members who applied for crop insurance under their names but for his benefit.

Further entangled in this fraudulent scheme is Manion’s daughter, Leann Elizabeth Manion Bergdorff, who has also pleaded guilty to making false statements during a federal investigation. Bergdorff falsely claimed active involvement in farming crops insured in her name, affecting the integrity of the investigation into the fraudulent claims.

Scheduled for sentencing on May 1, Manion’s case underscores the challenges and complexities involved in regulating agricultural insurance programs and the lengths individuals may go to exploit these systems for financial gain.