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Banks (Finance)

Notorious Michigan Agribusiness Owner Sentenced to 8 Years in Prison for $17 Million Bank and Farm Fraud Scheme

Strategic Insights

— 2 min read

Michael David Stamp, a 46-year-old resident of Decatur, Michigan, was sentenced to 96 months in federal prison for his role in a massive bank fraud and federal farm program fraud scheme that resulted in over $17 million in losses. Stamp, who once operated the largest agribusiness in Michigan, pleaded guilty to engaging in a scheme to defraud his lender, Wells Fargo Bank, and conspiring to defraud the Federal Crop Insurance Corporation. The scheme, characterized by U.S. District Judge Paul L. Maloney as "rampant" and a "rip-off of the taxpayers of the United States," involved obtaining a $68 million line of credit using false documents.

Key Takeaways:

  • Michael David Stamp, a Michigan resident, was sentenced to 96 months in federal prison for his role in a $17 million bank and farm fraud scheme.
  • Stamp operated the largest agribusiness in Michigan and pleaded guilty to engaging in a scheme to defraud his lender, Wells Fargo Bank, and conspiring to defraud the Federal Crop Insurance Corporation.
  • The scheme resulted in over $17 million in losses, including $68 million from Wells Fargo Bank and losses to the U.S. Department of Agriculture's Risk Management Agency and the Farm Service Agency.
  • U.S. District Judge Paul L. Maloney characterized the scheme as "rampant" and a "rip-off of the taxpayers of the United States."
  • The investigation was conducted by Internal Revenue Service-Criminal Investigations, the U.S.D.A's Office of Inspector General, and the U.S.D.A's Risk Management Agency.
  • Assistant U.S. Attorneys Clay Stiffler and Tim VerHey prosecuted the case.

Statistics:

  • $17,000,000: the total losses resulting from Stamp's scheme (Source: U.S. Attorney's Office for the Western District of Michigan)
  • $68,000,000: the amount of money Stamp fraudulently obtained from Wells Fargo Bank (Source: U.S. Attorney's Office for the Western District of Michigan)
  • 96 months: the length of Stamp's prison sentence (Source: U.S. Attorney's Office for the Western District of Michigan)
  • $68 million: the amount of the line of credit obtained through Stamp's scheme (Source: U.S. Department of Agriculture's Risk Management Agency and U.S.D.A's Farm Service Agency)
  • 5 years: the length of Stamp's supervised release (Source: U.S. Attorney's Office for the Western District of Michigan)
  • 17 million dollars: the amount of restitution ordered to be paid by Stamp (Source: U.S. Attorney's Office for the Western District of Michigan)

Sources:

  • U.S. Attorney's Office for the Western District of Michigan
  • Internal Revenue Service-Criminal Investigations
  • U.S.D.A's Office of Inspector General
  • U.S.D.A's Risk Management Agency
  • U.S.D.A's Farm Service Agency
  • Wells Fargo Bank

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