Rick T. Gray, Crop Insurance Fraud, Washington 2023
Yakima, WA – Rick T. Gray, the owner of Gray Farms & Cattle Co. LLC, has been found liable for $607,284 in a crop insurance fraud case. Gray submitted false and fraudulent claims for crop insurance for his farm businesses in Klickitat County, Washington, and received hundreds of thousands of dollars in indemnity payments.
The federal crop insurance program, run by the United States Department of Agriculture (USDA), provides a mechanism through which participating farm owners may obtain monetary subsidies and financial protection against losses to their crops. If a participating farm owner experiences loss due to weather or other factors, the farm owner may submit a claim for indemnity from those losses. Crucial to participation in the program is that the farm owner must disclose all sales of product during a given crop year. In 2015, Gray submitted claims for loss on behalf of his farm businesses and received hundreds of thousands of dollars in indemnity payments.
However, Gray knowingly failed to disclose tens of thousands of bushels of wheat that he sold during that crop year, and affirmatively misrepresenting his wheat production and sales for the year. The United States filed a Complaint pursuant to the False Claims Act, a federal statute that protects the public from fraud against federal programs, alleging that Gray had submitted false crop insurance claims during 2015.
In a judicial order dated August 21, 2023, United States District Judge Thomas O. Rice granted summary judgment on behalf of the United States with respect to the United States’ False Claims Act claims, finding that the undisputed evidence demonstrated that Gray knowingly submitted false claims and made false statements material to payment by knowingly failing to disclose and misrepresenting more than 35,000 bushels of wheat that he sold during crop year 2015, leading to Gray fraudulently receiving $180,428 in indemnity payments to which he was not entitled.
The False Claims Act calls for treble (triple) damages as well as additional penalties for each false claim submitted. Therefore, in addition to finding both Gray and Gray Farms liable, the Court imposed total judgment of $607,284 in treble damages and the maximum possible penalties.
“The Federal Crop Insurance program was created in the wake of staggering losses, poverty, and famine caused by the Dust Bowl,” said United States Attorney Vanessa R. Waldref. “It not only protects our farmers and farm workers, but protects our community’s food supply, and helps to keep food affordable. Attempting to cheat the system by claiming losses for crops that in fact were not lost but that the farm owner successfully sold, is simply unconscionable.”
Defendant: Rick T. Gray
Criminal Charges: Submitting false and fraudulent claims for crop insurance
City and State: Yakima, Washington
Date: August 21, 2023
Sentence or Outcome: $607,284 in treble damages and maximum possible penalties
Dollar Amounts: $607,284 in treble damages, $180,428 in indemnity payments
Key Facts
- State: Washington
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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