KALAMAZOO, MI (WKZO AM/FM) — A plea deal entered by the former owners of Stamp Farms in Van Buren County has been rejected by Judge Paul L. Maloney as of Wednesday, January 22.
Previously, former Stamp Farms owner Michael Stamp pleaded guilty on charges of conspiracy to commit bank fraud and conspiracy to commit crop insurance fraud. His wife Melissa had also pleaded guilty to misprision of a felony, as prosecutors say she helped cover up fraud activities.
Both cases had a requirement of being resolved at the same time.
A plea deal that Stamp entered would have resulted in a sentence of no more than five years in prison, but Judge Maloney rejected the deal based on the sentencing guidelines for the case.
Instead, Maloney said that Stamp should be sentenced for between 12.5 and 15 years in prison.
Since both cases needed to be resolved at the same time, the rejection voids the plea deal of Melissa as well.
Maloney said that the fraudulent activity committed by Stamp resulted in a loss of over $20 million from banks and the federal government. The plea deal, he said, was too lenient based on how extensive the crimes were.
As a result, conferences have been scheduled for January 31 to decide what will happen going forward. The Stamps have been given a chance to change their plea.
Maloney said that Michael Stamp was the mastermind of the fraud plot involving five other people including Melissa, of which he was “clearly pulling the strings.”
