Michigan Farmer to Pay $1.2 Million for Crop Insurance

A Michigan farmer named Gaylord Lincoln has reached an agreement with the U.S. government. He will pay $1.2 million to settle allegations of wrongdoing related to crop insurance and federal farm benefit payments.

According to the case, there were concerns that Lincoln might be continuing the alleged scam even while the court case was ongoing. As a result, U.S. attorneys asked for the case to be expedited. The settlement amount was determined based on Lincoln's ability to pay.

The accusations against Lincoln involved violating the False Claims Act by allegedly obtaining more federal farm benefit program payments than he should have received. The allegations centered around what is called a "straw-farm operation," where Lincoln financed a group of "straw lessees" to bypass USDA benefits limits set for farms from 2010 to 2019.

In an attempt to avoid paying over $19 million in debts to the federal government, it was claimed that Lincoln tried to sell assets to his grandson, Carter Gibbs.

To address the fraudulent activities, a settlement was reached with the crop insurance company Silveus Insurance Group Inc. The company agreed to exclude themselves from federal programs voluntarily and paid $500,000 to resolve allegations of submitting fraudulent crop insurance claims for Lincoln. As part of the agreement, Silveus Insurance Group Inc. will be monitored by the USDA's Risk Management Agency for one year.

U.S. Attorney Mark Totten stressed the importance of honesty and following the rules for federal programs designed to support farmers. The USDA's Office of Inspector General also expressed their commitment to fighting crop insurance fraud, as fraudulent activities divert taxpayer dollars from their intended purposes.

The original complaint alleged that Lincoln used "straw operators" who leased parts of the farm and falsely claimed to be producers enrolling in various crop insurance and farm programs. The alleged fraud allowed Lincoln to receive crop insurance premiums and other payments from farm programs he wasn't entitled to.

The settlement serves as a reminder of the need to maintain the integrity of federal farm benefit programs and protect the interests of honest farmers and the public.

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