Sully County Father-Son Duo Sentenced in $1.3M Crop Fraud

Two Sully County, South Dakota men — James Garrett, 68, and his son Levi Garrett, 44 — have been sentenced to federal prison for orchestrating a multi-year scheme to defraud the federal crop insurance program, netting more than $1.3 million in false claims. The father-son team lied about planting thousands of acres of crops they never sowed, then collected payouts when the nonexistent harvests ‘failed.’

On January 30, 2023, Chief Judge Roberto A. Lange handed down the sentences in U.S. District Court: James Garrett received 18 months behind bars, followed by two years of supervised release, and was ordered to pay $1,045,544 in restitution. Levi Garrett was sentenced to 24 months in federal prison, two years of supervised release, and must repay $279,396 to the United States.

The conviction followed a six-day trial ending October 31, 2022, where a jury found James Garrett guilty of two counts of False Statements in Connection with Federal Crop Insurance and Levi Garrett guilty of one count. The charges stemmed from false certifications made to a crop insurance provider — in 2018, the pair claimed they planted 2,200 acres of sunflowers. They planted none. Despite that, they collected indemnity payments for total crop failure.

In 2019, James Garrett doubled down, falsely reporting he planted 47.5 acres of corn as part of a broader claim. Again, no corn was ever planted. The fraud was uncovered through investigative work that peeled back layers of falsified records and field inspections that contradicted their claims. Altogether, the Garretts fraudulently obtained over $1.3 million in government-backed insurance benefits.

‘The federal crop insurance program is a vital risk management tool designed to help honest farmers sustain their agricultural productions under difficult circumstances,’ said U.S. Attorney Alison J. Ramsdell. ‘James and Levi Garrett unlawfully exploited that program and lined their pockets at the expense of taxpayers. Our office is committed to prosecuting any South Dakotan who dishonestly takes advantage of government programs.’

The case was investigated by the U.S. Department of Agriculture, Office of Inspector General, and the USDA’s Risk Management Agency. Prosecuted by Assistant U.S. Attorneys Cameron J. Cook and Alexis A. Warner, the Garretts are now ordered to report to a federal prison facility designated by the U.S. Bureau of Prisons. Their fall from family farmers to federal felons marks another blow to agricultural integrity in the heartland.