FARGO, ND – A federal jury has found North Dakota potato farming brothers Aaron and Derek Johnson guilty of all felony counts of crop insurance.
The Grand Forks Herald reports that jury members unanimously found the Johnsons guilty of intentionally destroying crops to get unfair gains in crop insurance and federal disaster payments, which totaled to approximately $2 million.
Both brothers were convicted of conspiracy and false statements to the U.S. Department of Agriculture Risk Management Agency and to law enforcement on different occasions. Aaron Johnson was also found guilty of lying to the USDA Farm Service Agency.
As we previously reported, the brothers, who operated the North Dakota potato company Johnson Potato, were charged with conspiracy and making false statements. The defendants were accused of applying chemicals, including a substance known as "Rid-X" that's designed to dissolve solid materials in septic systems, while also adding spoiled and frozen potatoes to their stored crop. The actions resulted in the potatoes rotting. They then exploited the federal government’s crop insurance program.
Nick Chase, the Lead Assistant U.S. Attorney in the case, told the Herald that this successful prosecution is important because the USDA agencies and programs are “built on trust and that trust was broken in an extreme way, and they were flouting the law.”
Chase added, “A lot of people knew what was going on and didn’t approve. A lot of people came forward at great personal and professional cost. I view those people as heroes. I felt a lot of pressure to not let them down.”
The Herald also notes that the brothers have been ordered to have no contact with the approximately 20 witnesses in the prosecution's case.
Valley News reports that the Johnson brothers face up to 30 years in prison and millions of dollars in fines, restitution and criminal forfeiture. The sentencing hearing is set for March 9 at 1:30 p.m. in Fargo, ND. They were released on their own recognizance.
