A Casey County man who admitted defrauding a federal farm lender was sentenced Wednesday to 12 months in prison and ordered to repay $689,104.
Christopher S. Fair, 38, of Liberty, also will be on supervised release for three years after leaving prison, with the first year of that on home confinement, according to the office of U.S. Attorney Russell M. Coleman.
Fair borrowed money in 2012 and 2013 from a subsidiary of the federal Farm Credit Administration to plant grain crops, according to a court records.
The loans were guaranteed by the U.S. Department of Agriculture’s Farm Service Agency.
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Under the loan, Fair was supposed to sell the grain only to authorized buyers, with the crop pledged as security for the loan.
Instead, Fair sold the grain to unauthorized buyers, kept the money and defaulted on the loan, resulting in a $689,104 loss to the federal lender, according to a court record.
Fair filed for bankruptcy in 2013. He was later charged with hiding property and proceeds from grain sales from creditors during the proceeding.
Fair pleaded guilty to converting assets that were due to the lender and to bankruptcy fraud.
A friend of Fair’s, 51-year-old Timothy Jaynes, pleaded guilty in connection with letting Fair put some of the money from the fraudulent sales into a bank account Jaynes had created.
Jaynes was sentenced to three years’ probation and ordered to pay $50,000 restitution.
U.S. District Judge Greg. N. Stivers sentenced Fair in federal court in Bowling Green.