NEW SHERIFF IN TOWN

Jan 11, 2002 - The Agricultural Risk Protection Act (ARPA) greatly enhanced the tools that the Risk Management Agency (RMA) has to curb program abuse. The new man in charge of helping to apply the penalties authorized under ARPA (the Sanctions Officer) is former Office of General Counsel attorney Robert Crockett.

A seasoned crop insurance veteran who has been instrumental in securing substantial damages and court decisions against abusers, Crockett spent his first months on the job working with the Regional Compliance Offices (RCOs) to make them aware of the authorities and how to put together an effective case.

Working with the RCOs, the Sanctions Officer will forward his findings and recommendations to the Appeals & Litigation Office. Following their review, a legal opinion will be obtained from the Office of General Counsel. If the case is judged valid by USDA's legal team, RMA will file a complaint with USDA's Administrative Law Office. At the request of the accused, a hearing will take place, after which the presiding Administrative Law Judge will render a decision.

Possible sanctions can include a civil penalty of $10,000 or the actual cost to the government of the abuse. ARPA also provides for disqualifications or suspensions up to 5 years for reinsured companies, their employees, agents, and loss adjusters, as well as for insured producers. Disqualified or suspended persons are also ineligible for most other USDA agency programs such as those administered by the Farm Service Agency, including both subsidy payments and farm loans.