THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Friday, May 5, 1995                    TAG: 9505050564
SECTION: LOCAL                    PAGE: B2   EDITION: NORTH CAROLINA 
DATELINE: AYDEN                              LENGTH: Short :   29 lines

FARMER GUILTY OF TAX FRAUD

An Ayden farmer recently pleaded guilty to one count of filing a false 1991 federal income tax return.

James H. Loftin, 52, could receive a maximum three years imprisonment and $250,000 fine when he is sentenced later this year.

Loftin was charged with purposely growing and selling about 75,000 pounds of tobacco that was in excess of his government-mandated allotment, according to a news release from Eastern District U.S. Attorney Janice C. Cole's office.

Also, he allegedly used a false tobacco dealer's card to sell his excess tobacco and then used various acquaintances to cash the resulting checks to avoid detection by authorities, the statement said.

Loftin under-reported his 1991 income by more than $90,000, mainly by not reporting the excess tobacco sales. He is the first farmer to be charged with a federal crime arising out of a joint venture with the Internal Revenue Service and U.S. Department of Agriculture.

KEYWORDS: TAX FRAUD by CNB