Kinston farmer jailed after feds discover soybean ruse - WNCN: News, Weather

Kinston farmer jailed after feds discover soybean ruse

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A Kinston man who faked how many bushels of soybeans he had to fool federal investigators was sentenced Thursday to 12 months and one day of prison.

William L. Whaley Jr., 50, pleaded guilty on April 9 to making false statements in connection with a commodity credit corporation loan.

Whaley, the controlling partner of Whaley Partners, entered into a commodity loan agreement with the U.S. Department of Agriculture for $272,986.56 and used bushels of soybeans as collateral.

An agency employee went to Whaley's farm to verify the quantity and quality of the beans. But Whaley had a farm hand suspend a bucket of soybeans just below the opening at the top of the grain bin to give the illusion that the bin was full of more than 54,000 bushels of soybeans.

In fact, the bin was empty.

Whaley then submitted false lien waivers, the federal government said.

The Farm Service Agency discovered the fraud in May 2009.

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