A North Carolina woman has been charged with orchestrating a scheme to defraud the United States Department of Agriculture’s Discrimination Financial Assistance Program of more than $9 million, according to a July 28 announcement by Russ Ferguson, U.S. Attorney for the Western District of North Carolina.
A federal grand jury in Charlotte indicted Linda Faye Hough, 64, of Rockingham, on one count of mail fraud and six counts of making false or fraudulent claims to a federal program related to applications for DFAP funding. The indictment alleges that from January 2024 to August 2024, Hough submitted fraudulent DFAP applications for herself and others containing false information to make applicants appear eligible for awards. In some cases, she allegedly solicited and received kickback payments from applicants after they received funds.
“Regardless of the program, hard-earned taxpayer dollars should be spent where Congress intended, not to personally benefit those who exploit the system,” said Ferguson. “My office is committed to rooting out fraud, safeguarding taxpayer dollars, and preserving the integrity of federal assistance programs.”
USDA Inspector General John Walk said, “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.” FBI Charlotte Special Agent in Charge Reid Davis added, “When a federal program is defrauded, every taxpayer becomes a victim and those deserving of assistance are essentially robbed of much needed financial help. Fighting fraud is one of the highest priorities in the FBI. We will work tirelessly with our law enforcement partners to take down anyone who unlawfully obtains federal assistance to use in their personal piggy banks.”
The Discrimination Financial Assistance Program was established by the Inflation Reduction Act in 2022 with $2.2 billion appropriated by Congress as compensation for farmers, ranchers, and forest landowners who experienced discrimination in USDA farm lending before January 2021. Applicants were required to provide documentation proving eligibility; individual awards were capped at $500,000 per applicant.
Hough appeared in federal court following her indictment. If convicted on all charges, she faces up to 20 years imprisonment for mail fraud and five years per count on each charge related to filing false claims; sentencing will be determined by a judge based on statutory factors and guidelines.
The investigation was conducted by USDA Office of Inspector General and FBI with support from North Carolina State Bureau of Investigation Financial Crimes Unit; prosecution is being handled by Special Assistant U.S. Attorney Eric Frick in Charlotte.
According to the official website, the U.S. Attorney’s Office for the Western District of North Carolina operates under the Department of Justice with nearly 100 staff members handling prosecutions across western North Carolina including facilities in Charlotte and Asheville as well as initiatives addressing elder abuse and substance abuse.
The Department emphasized that all charges are allegations at this stage; Hough remains presumed innocent unless proven guilty beyond reasonable doubt.