South Dakota Father and Son to Pay $4M in Crop Insurance Fraud Case

A South Dakota father and son have been ordered to pay over $4 million to resolve violations of the False Claims Act arising out of their 2018 and 2019 crop insurance fraud, according to the U.S. Attorney’s Office, District of South Dakota.

James and Levi Garrett of Sully County operated a family farm and ranch. In 2018, they falsely certified to a crop insurance company that they planted 2,200 total acres of sunflowers, the U.S. Attorney’s Office said. The Garretts allegedly did not plant any sunflowers, and they wrongfully received indemnity from the insurance company as if their entire crop failed.

In 2019, James Garrett falsely certified he planted 47.5 acres of corn as part of a larger claim. In fact, no corn was planted, and he wrongfully received indemnity from the insurance company that year. The couple allegedly obtained over $1.3 million in total benefits from their crimes.

The crimes fall under The False Claims Act, which allows the government to seek treble damages and civil penalties against individuals and companies that knowingly submit false or fraudulent claims for payment to federal programs.

Topics Fraud Agribusiness