U.S. Attorney's Office for the Eastern District of Arkansas

Contact: Michael D. Johnson (501) 324-5342

TO: All Interested Media

On June 14, 2001 the U.S. District Court for the Eastern District of Arkansas entered judgment against Larry Reed & Sons Partnership for $291,059.50 and an additional $5,000 civil fine against Larry Reed, Darrell Reed and Joey Reed. The case was tried to a jury in Jonesboro, Arkansas, Honorable Stephen M. Reasoner presiding.

The jury found that each of the Reeds and their partnership submitted false cotton crop insurance claims for the 1993 crop year and awarded $93,686.50 damages to the U.S. against the partnership. Pursuant to the False Claims Act under which the Reeds were sued, the damages were trebled and a $10,000 fine was assessed by the Court against the partnership in addition to the $5,000 amount fined against the Reeds.

At trial, the U.S. introduced false seed receipts submitted by the defendants with their cotton crop insurance claims and relied on infrared satellite photos that indicated that more than 80% of the 998 insured acres were not plowed by the claimed planting date.

This case was investigated by the U.S. Department of Agriculture-OIG and the Southern Regional Compliance Office of the Risk Management Agency in Dallas, Texas.

The U.S. was represented by Doug Chavis with the U.S. Attorney’s Office in Little Rock. The Reeds were represented by Joe Rogers of West Memphis.