A Casey County man pleaded guilty Monday to helping a farmer defraud the federal Farm Credit Administration.
Timothy R. Jaynes, 51, faces up to five years in prison on the charge, though his sentence will likely be less under federal guidelines.
According to court documents, Jaynes took part in the fraud to help his friend Christopher S. Fair, 38.
Fair received loans in 2012 from Central Kentucky Agriculture Credit, a subsidiary of the federal agency, and pledged the proceeds from grain sales as collateral for the loans, according to court documents.
The loan terms bound Fair to only sell his grain to certain buyers and use the proceeds to pay the loan, but Fair allegedly sold grain to unauthorized buyers and put the money in his accounts.
Jaynes admitted he set up a bank account under the name FJ Holdings and let Fair put some of the money there as well.
Jaynes gave most of the money to Fair but also received some himself, according to his plea agreement.
Jaynes agreed to pay restitution of $50,000 to the federal farm-lending agency. He is to be sentenced July 6.
Fair is charged in a separate case with helping defraud the farm-credit agency, mail fraud and bankruptcy fraud. The charges are pending.