Farm Service Agency Loan Fraud

Fraud permeates throughout federal programs that provide important loan services to citizens who require otherwise unavailable capital. In particular, many of these loan programs work with those interested in purchasing property and using it for either personal or professional needs. Especially useful to help family-owned farms stay running, the government helps these small operators remain in business and successful enough to maintain their households.

There are two primary types of loans provided by the Farm Service Agency, the federal government's administration responsible for offering assistance to current or prospective farm owners. The first of these loans is a start-up or ownership loan, which gives farmers who have been turned down by standard financial institutions and private farm assistance programs a chance to get into the field of agriculture. The other type of loan helps existing farms continue their day-to-day operations. Considering the cost of machine repairs and land management strategies, these funds can be essential for some farm owners.

In regards to these two loan programs, fraud exists in ways comparative to similar loan programs. Like small business loan programs, farm operation or ownership loan fraud can occur through the presentation of untrue information. Personal information can be filled out in such a way as to deflect responsibility from a certain person when repayment is necessary. Fraud may also occur if a person does not tell the truth concerning the size and general use of their land.

Financial information is probably one of the most common ways to defraud the government. Debtors should only take out loans they know they can pay back over time, and falsifying financial records can allow debtors to receive loans that are far too large for them to handle.

To learn more about federal loan fraud in regards to farm operation and ownership, contact a qui tam attorney.