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Casey Co. man guilty of defrauding Farm Credit Administration

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 BOWLING GREEN –  A Casey County, Kentucky, man pled guilty today in United States District Court before District Judge Greg N. Stivers for his role in a conspiracy to defraud the Farm Credit Administration by concealing the sale of grain to unauthorized purchasers, announced United States Attorney John E. Kuhn, Jr.

Christopher S. Fair, 38, of Liberty, Kentucky, pled guilty to two counts of a criminal indictment including converting assets pledged to the Farm Credit Administration and bankruptcy fraud. He is scheduled for sentencing before Judge Stivers on November 8, 2017, at 10:30am in Bowling Green.

According to the plea agreement, between July 18, 2012, and October 29, 2013, defendant Fair obtained loans from Central Kentucky Agriculture Credit (CKAC) and secured these loans with the proceeds of expected grain sales and pursuant to the loan agreements, Fair was only authorized to sell grain to authorized buyers. CKAC is a subsidiary of the US Department of Agriculture (USDA), Farm Credit Administration, and the loans were guaranteed by the USDA Farm Service Agency (FSA).

Contrary to the loan agreement, and without CKAC’s knowledge or consent, Fair sold his grain to unauthorized purchasers, and transferred the proceeds of those sales to bank accounts under his own control and the control of others, including a bank account under the name FJ Holdings, an entity created by Fair’s friend, Timothy Jaynes. Fair subsequently used those proceeds for his own personal benefit.  Fair ultimately defaulted on the CKAC loans, resulting in a loss to FSA of $689,104.28.

In July 2013 Fair filed for Chapter 7 bankruptcy protection and knowingly and fraudulently concealed his property and proceeds from his creditors and the US Trustee, including proceeds held in bank accounts under the names FJ Holdings and Jman Farms, LLC.  Jman Farms LLC was created by another of Fair’s friends, at Fair’s request, for the purpose of hiding Fair’s assets from creditors.

Fair was ordered to pay restitution in the amount of 689,104,28 to the Farm Services Agency. If convicted at trial, Fair could have been sentenced to 10 years in prison, fined $500,000 and ordered to serve a 3 year term of supervised release.

Defendant Jaynes, 51, of Casey County, was charged in a separate case by Criminal Information and pled guilty in U.S. District Court to converting assets pledged to the Farm Credit Administration Defendant. Jaynes was sentenced to serve three years of probation with supervision, and ordered to pay restitution in the amount of $50,000 to the Farm Service Agency.

This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Department of Agriculture, the Federal Bureau of Investigation (FBI), and the US Bankruptcy Trustee’s Office.