Local News

Two sentenced in crop insurance fraud case

Posted December 8, 2009

Map Marker  Find News Near Me

— Two men were placed on probation Tuesday for their roles in a crop insurance fraud and money laundering scheme, authorities said.

Roland D. McCoy Jr., of Zebulon, and Robert Thomas Veasey, of Durham, pleaded guilty in February to conspiracy to launder money generated through the filing of false tobacco insurance claims with the government. McCoy was placed on probation for five years, while Veasey must serve three years on probation.

Wilson insurance agent Robert "Carl" Stokes pleaded guilty in October to heading up the scheme. He owned Hallmart Agency Inc. and sold crop insurance policies for agricultural products, including tobacco.

Federal agents say he posted some of the highest numbers for crop losses among insurance agents across the country. After an undercover sting operation, agents said they determined that some of his business dealings were fraudulent.

Part of the conspiracy was selling tobacco under other people's names to conceal the actual farmers’ true tobacco production totals. People received money in exchange for the use of their names as the actual grower, facilitating false federal crop insurance claims by the actual farmers, authorities said.

Veasey allowed a Wilson tobacco broker to sell tobacco in his name and helped convert the proceeds to cash, authorities said. McCoy, a farmer, worked with another tobacco broker to sell his tobacco in the names of other people to hide his true tobacco
production.

Ten other people have been convicted in the scheme, and the case remains under investigation.

4 Comments

This story is closed for comments.

Oldest First
View all
  • teacher-mom Dec 8, 2009

    Well, slap them with a powder puff...

  • 6079 SMITH W Dec 8, 2009

    Mr. middle of the road: By George you're right! It IS awful quiet, ain't it? (crickets) White collar crime is a proven business model for those Neo-cons anyway...they call it "free market economics"....................;)

  • kmb0694 Dec 8, 2009

    I found it odd how quickly Anchor had taken over for Hallmart.

  • Mr. Middle of the Road Dec 8, 2009

    Funny all the 'anti crime' neo cons aren't commenting on this. I guess since its a white collar crime its okay by them.