Selma farmer, Clovis packing house manager enter pleas to crop insurance fraud charges

A Selma farmer and a Clovis fruit packing house manager have each pleaded guilty for 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. Additionally, 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 house to participate in the fraud scheme and hide his misconduct from other principals in the company.

Federal investigators said the scheme went on from 2012 through 2016. During that time, Sihota and Hackett worked together to underreport the amount of fruit Sihota's company delivered and sold through the packing house. Sihota, whose family farms table grapes and other crops in Fresno and Tulare counties, made it appear as though the farm had suffered significant crop losses when that was not true.

The scheme netted them more than $650,000 in crop insurance payments that they were not entitled to receive.

The case was the result of an investigation by the U.S. Department of Agriculture Office of Inspector General and Risk Management Agency Special Investigations staff. 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 intent and misdirects taxpayer dollars from where they were 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 scheduled to be sentenced on March 3 and Hackett is scheduled to be sentenced on Jan. 27.