A North Carolina woman is facing federal charges for allegedly orchestrating a scheme that defrauded the United States Department of Agriculture’s (USDA) Discrimination Financial Assistance Program of millions of dollars.
A federal grand jury in Charlotte returned an indictment charging Linda Faye Hough, 64, of Rockingham, N.C., with one count of mail fraud and six counts of making false, fictitious, or fraudulent claims to a federal program in connection with more than $9 million in DFAP applications.
“Regardless of the program, hard-earned taxpayer dollars should be spent where Congress intended, not to personally benefit those who exploit the system,” said U.S. Attorney Russ Ferguson. “My office is committed to rooting out fraud, safeguarding taxpayer dollars, and preserving the integrity of federal assistance programs.”
The Inflation Reduction Act established the DFAP in 2022, which appropriated $2.2 billion in federal funding to compensate farmers, ranchers, and forest landowners who experienced discrimination in USDA farm lending programs before January 2021. To be eligible for funding, applicants were required to submit documentation demonstrating eligibility, including that they owned or leased farmland; that they participated in or attempted to participate in a USDA farm loan program; that they experienced discrimination by USDA employees; and that they suffered financial losses. Individual DFAP awards were capped at $500,000 per applicant.
“A program designed to remedy wrongdoing instead turned into another vector for criminals to defraud the taxpayer. The USDA Office of Inspector General is committed to ensuring taxpayer money is wisely spent. Those who steal from the public can expect to be found and prosecuted to the fullest extent of the law,” said USDA Inspector General John Walk.