SULLY COUNTY FARMERS ORDERED TO PAY OVER $4 MILLION IN CIVIL JUDGMENT FOR CROP INSURANCE FRAUD

States News Service

The following information was released by the United States Attorney's Office for the District of South Dakota:

United States Attorney Alison J. Ramsdell announced today that Chief U.S. District Judge Roberto A. Lange has entered a judgment against James and Levi Garrett and ordered them to pay a combined total of $4,019,820 to resolve violations of the False Claims Act arising out of their 2018 and 2019 crop insurance fraud.

The civil judgment follows the defendants' 2022 criminal convictions for the same conduct. The defendants operated a family farm and ranch in Sully County. In 2018, the defendants falsely certified to a crop insurance company that they planted 2,200 total acres of sunflowers. In fact, the defendants 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 defendants fraudulently obtained over $1.3 million in total benefits from their crimes.

"Protecting taxpayer-funded programs from fraud and abuse remains a top priority for our office," said U.S. Attorney Ramsdell, "and we won't stop at criminal convictions. As this case demonstrates, those who attempt to cheat federal programs face serious consequencesboth criminal and civil."

The False Claims Act 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. In this case, the defendants were held liable for civil damages in addition to their criminal convictions.

The case was investigated by the U.S. Department of Agriculture, Office of Inspector General, and the U.S. Department of Agriculture, Risk Management Agency. Assistant U.S. Attorney Alexis A. Warner prosecuted the case.