Gaylord D. Lincoln, Crop Insurance and Farm Benefit Program Fraud, Michigan 2021

A Michigan farmer has agreed to pay $1.2 million to resolve allegations of crop insurance and farm benefit program fraud, according to a recent settlement. Gaylord D. Lincoln and his company, G. Lincoln Farms, LLC, located in Springport, Michigan, have been accused of causing the submission of fraudulent claims for federal crop insurance and federal farm benefit payments.

The settlement, which was reached in December 2021, alleges that Lincoln and his company operated a scheme to avoid benefit program payment limitations. Specifically, it is alleged that they placed their farmland and crops in the names of their employees, who served as a facade for the defendants but had no financial risk or interest in the crops and had them enroll in FSA benefit programs.

These individuals then provided the FSA benefit payments to Lincoln and his company. The United States further alleged that Lincoln and his company caused these individuals to take out fraudulent federal crop insurance policies for these crops, even though they had no insurable interest in these crops, and that the proceeds of the policies went to the defendants.

The allegations were brought under the False Claims Act, which is a federal law that prohibits the submission of false claims to the government. The United States Attorney’s Office for the Western District of Michigan, the USDA-OIG, and the USDA’s Risk Management Agency were involved in the investigation and prosecution of this case.

Laboratory testing or forensic analysis played a key role in this case. Lincoln and his company have agreed to pay $1.2 million to resolve the allegations. The settlement was negotiated based on the defendants’ ability to pay.

This settlement follows a related March 2022 civil settlement with the insurance agent and insurance agency that worked with the defendants.

Exact criminal charges: Violation of the False Claims Act by causing the submission of fraudulent claims for federal crop insurance and federal farm benefit payments.

City and state: Springport, Michigan.

Exact date of crime: December 2021.

Sentence or outcome: Lincoln and his company have agreed to pay $1.2 million to resolve the allegations.

Dollar amounts: $1,200,000.

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