A Selma farmer and a Clovis fruit warehouse manager have both pleaded guilty to defrauding a crop insurance company of more than $650,000 in payments.
Jatinderjeet “Jyoti” Sihota, 37, and Ralph Hackett, 69, face up to 20 years in prison and a fine of up to $250,000 for their crimes. In addition, Hackett must pay criminal restitution of $650,000 and a separate civil settlement of $605,000 for his role in directing lower-level employees at the packing plant to participate in the fraud scheme and conceal his misconduct from other directors in the company.
Federal investigators say the scheme lasted from 2012 through 2016. During that time, Sihota and Hackett worked together to underreport the amount of fruit that Sihota's company delivered and sold through the packing house. Sihota, whose family grows table grapes and other crops in Fresno and Tulare counties, made it appear as if the farm had suffered significant crop losses, when that was not true.
The scheme gave them more than $650,000 in crop insurance benefits to which they were not entitled.
The case was the result of an investigation by the staff of the Inspector General and the U.S. Department of Agriculture's Risk Management Agency Special Investigations. Assistant U.S. Attorney Joseph Barton prosecuted the case.
“The USDA OIG is committed to combating crop insurance fraud through criminal investigations and civil enforcement. Fraudulent activity within the crop insurance program undermines its intentions and misdirects taxpayer money where it was intended. We thank the U.S. Attorney's Office for the Eastern District of California for pursuing justice until these conspirators were held accountable,” said USDA OIG Special Agent in Charge Shawn Dionida.
Sihota is expected to be sentenced on March 3 and Hackett is scheduled to be sentenced on January 27.
