Summary of a Recent
Judicial Development in
Finance & Credit

Fraudulently Obtaining Emergency Loans from Farm Service Agency

Walt McCarter
National AgLaw Center Research Associate

Summary of Decision

In Toledo-Gonzalez v. United States, No. 06-1765 (JAG), 2007 WL 2743685 (D.P.R. Sept. 18, 2007), the United States District Court for the District of Puerto Rico denied a 28 U.S.C. § 2255 petition to set aside a guilty plea because there was no "fundamental defect which inherently results in a complete miscarriage of justice or an omission inconsistent with the rudimentary demands of fair procedure."

Background

Pursuant to a plea agreement, the petitioner pled guilty to conspiring to fraudulently obtain emergency and operating loans from Farm Service Agency by submitting false claims of losses due to hurricane damage, in violation of 18 U.S.C. § 371. Id. at *1-2. He later submitted a 28 U.S.C. § 2255 petition to set aside his plea. Id. at *3.

Arguments

The petitioner argued that his indictment and conviction were invalid because amendments to 18 U.S.C. § § 1006 and 1014 that made it a crime to defraud a "successor agency" of the Farmers Home Administration (FmHA) went into effect after he had committed the offense of defrauding Farm Service Agency (the "successor agency" to FmHA). Id.

Analysis and Holdings

The court rejected the petitioner's argument because he was not charged with violating 18 U.S.C. §§ 1006 and 1014, but with conspiracy to defraud a government agency in violation of 18 U.S.C. § 371. Id. After review, the court held that the indictment had adequately alleged an offense under 18 U.S.C. § 371 (conspiracy), and therefore denied his petition. Id. at *4, *7.

The case was decided on September 18, 2007.