https://www.wbko.com/2025/05/26/barren-county-farmer-guilty-multi-million-dollar-fraud-scheme/

A Barren County farmer has admitted to orchestrating a nearly decade-long scheme to defraud the federal crop insurance program out of millions of dollars.

Larry Walden pleaded guilty on May 15 in federal court to a single felony count of conspiracy to commit money laundering, tied to years of false insurance claims and fake tobacco sales. The charge carries a maximum sentence of 20 years in prison. His sentencing is set for August.

Federal prosecutors say Walden manipulated the crop insurance system from 2014 through 2022, fabricating financial records to make it appear his burley tobacco crops failed — when, in fact, he was harvesting and selling more than he reported.

False claims, fake sales and phony paper trails

Walden admitted that he worked with employees at Farmers Tobacco Warehouse in Boyle County, using their help to create the illusion that he had to buy tobacco to meet his contracts. In reality, he was selling his own product under other names and covering his tracks with staged transactions.

Checks were written, receipts were generated and insurance adjusters were misled — all with the goal of inflating losses and triggering larger federal payouts. In several instances, he wrote checks to farmers who immediately returned the funds, according to court records.

Walden ran similar schemes at Greensburg Tobacco Market in 2020 and Fair Deal Tobacco in 2021 and 2022, records show.

What he owes

The fraud led to an agreement requiring Walden to repay at least $9.96 million to the U.S. Department of Agriculture’s Risk Management Agency.

In addition to restitution, he agreed to forfeit substantial property and cash:

l  120 acres on Happy Valley Road in Glasgow

l  A 5.7-acre property and home on Pace Quarry Road

l  A $900,000 cash payment in place of forfeiting a 170-acre tract in Cave City

l  Over $300,000 in recent insurance proceeds and asset sales

l  A $5.1 million personal money judgment as part of the laundering conviction

He must pay $750,000 within three months, with the remaining $150,000 due over three years.

Long-term consequences

Walden also agreed to a five-year exclusion from receiving benefits through federal farm programs — including crop insurance, farm subsidies, and organic certifications — essentially cutting him off from USDA financial support through 2030.

As part of the plea, he waived the right to appeal his conviction and agreed to cooperate with any remaining forfeiture proceedings.

One former warehouse manager, Thomas Kirkpatrick, has also been indicted in connection with Walden’s scheme and is currently fighting the charges in court.