An adjuster who helped central Kentucky farmers file more than $2 million in fraudulent crop insurance claims has been sentenced to three years in prison.
Timothy Douglas Snedegar, 65, of Mount Sterling, also is responsible for restitution totaling $2,294,693, according to a court document. Snedegar worked as an independent insurance adjuster, examining claims of hail damage to crops.
He admitted that in crop years 2012 through 2015, he wrote reports with false information on the amount of damage to tobacco crops, including photos of damage from other fields, and took kickbacks from insurance agents who were involved in the scheme.
Snedegar helped file dozens of claims that he knew were false, according to his plea agreement. The fraudulent claims caused a private insurance company to pay out more than $2.2 million.
Snedegar pled guilty to conspiracy to commit wire fraud.
Assistant U.S. Attorney Kathryn M. Anderson said in a sentencing memorandum that the crop hail insurance industry relies on the honesty of farmers and insurance adjusters to work. The combination of a dishonest adjuster and dishonest farmers deprived an insurance company of “vast sums of money,” Anderson said.
“It is a type of deceit that is hard to detect, when the very barriers designed to protect from fraud and abuse are themselves involved in the fraud and abuse,” the prosecutor said.
Snedegar must serve at least 85 percent of his sentence.
Several farmers and Michael McNew, an insurance agent involved in the fraud scheme, are liable for restitution with Snedegar. McNew pleaded guilty and was sentenced to seven years and two months in prison.
Snedegar was among more than 20 people charged criminally in an investigation of what prosecutors have called pervasive and severe fraud involving crop insurance in central Kentucky.
More than three dozen people have pled guilty to criminal charges or resolved fraud accusations through civil agreements as a result of the investigation.
U.S. District Judge Karen K. Caldwell sentenced Snedegar last week in federal court in Lexington.
By Bill Estep, Lexington Herald-Leader
