michigan farmer to pay $1.2 million agreement over crop insurance fraud

gaylord d. lincoln and g. lincoln farms, llc, placed in springport, michigan, have agreed to pay $1,2 hundred,000 to solve allegations that they violated the fake claims act by way of causing the submission of fraudulent claims for federal crop coverage and federal farm advantage payments. the agreement amount became negotiated primarily based at the defendants’ capacity to pay.

u.s. lawyer mark totten said, “michigan farmers rely on federal packages to provide financial protection, and these agricultural packages are vital to the countrywide well being. but, in turn, usda relies on farmers to inform the reality and play via the regulations. my workplace is committed to running with our law enforcement companions to root out fraud on these programs.

this settlement resolves civil claims the united states added in opposition to the defendants in a december 2021 lawsuit. in its grievance, the usa alleged that the defendants defrauded the u.s. branch of agriculture’s (“usda”) farm service organisation (“fsa”) with the aid of operating a scheme to keep away from gain program charge barriers. specially, the united states alleged that the defendants placed their farmland and crops in the names of their personnel, who served as a facade for defendants but had no monetary danger or hobby inside the vegetation and had them enroll in fsa benefit packages. these people then provided the fsa advantage payments to the defendants. america similarly alleged that defendants triggered these people to take out fraudulent federal crop coverage regulations for those crops, despite the fact that that they had no insurable interest in these plants, and that the proceeds of the policies went to the defendants.

shantel r. robinson, special agent-in-charge, u.s.a. branch of agriculture-workplace of inspector widespread (“usda-oig”), said, “the usa department of agriculture is devoted to combatting crop insurance fraud via civil enforcement underneath the fake claims act. fraudulent interest within the crop insurance software undermines its rationale and misdirects taxpayer greenbacks from where they have been meant. the united states branch of agriculture, office of inspector trendy will continue its undertaking to analyze allegations of waste, fraud, and abuse in usda packages.”

the resolutions received in this remember had been the end result of a coordinated attempt among the u.s. attorney’s workplace for the western district of michigan, usda-oig, and usda’s threat control organization. assistant u.s. legal professional andrew j. hull represented the united states.

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