Wheat farmer fined for crop insurance scam - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
August 31, 2023 Newswires
Share
Share
Post
Email

Wheat farmer fined for crop insurance scam

Capital Press (Salem, OR)

A federal judge has imposed a $607,284 judgment against a Klickitat County, Wash., wheat farmer who filed false crop insurance claims.

Rick T. Gray failed to report 35,378 bushels of wheat he sold while collecting USDA insurance payouts, according to a ruling Aug. 21 by U.S. District Judge Thomas O. Rice in Spokane. In a summary judgment, Rice found Gray guilty of violating the False Claims Act and levied maximum fines for each count on Gray and Gray Farms & Cattle Co. "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," U.S. Attorney Vanessa Waldref said in a statement. Efforts to obtain comment through Gray's lawyer were unsuccessful. Gray took out two crop insurance policies in 2015 on behalf of Gray Farms and also Gray Land & Livestock, according to court records. Gray submitted claims on both policies and reported selling all the wheat, 20,346 bushels, to a granary in Klickitat County. The USDA paid a total of $519,706 on the two policies. Gray didn't report selling wheat to three other granaries outside the county, including one in Oregon, according to court records. If he had reported those sales, the insurance payout would have been reduced by $180,429. Gray denied the allegations and said in a sworn statement that the 35,378 bushels of wheat were grown between 2006 and 2012. The wheat was purportedly stored in bins on land farmed by Gray Farms and Gray Land. Gray did not ask for a pre-harvest inspection in 2015 to document that he had stored wheat, according to court records. In his ruling, Rice stated that Gray didn't explain why he had stored wheat for up to nine years, nor why he didn't sell the wheat in Klickitat County, "rather than truck it to three other distant granaries." Under the False Claims Act, fines are based on tripling the amount falsely gained. Rice also levied the maximum $11,000 fine against Gray and Gray Farms on all counts, driving the judgment past $600,000.

A federal judge has imposed a $607,284 judgment against a Klickitat County, Wash., wheat farmer who filed false crop insurance claims.

Rick T. Gray failed to report 35,378 bushels of wheat he sold while collecting USDA insurance payouts, according to a ruling Aug. 21 by U.S. District Judge Thomas O. Rice in Spokane.

In a summary judgment, Rice found Gray guilty of violating the False Claims Act and levied maximum fines for each count on Gray and Gray Farms & Cattle Co.

"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," U.S. Attorney Vanessa Waldref said in a statement.

Efforts to obtain comment through Gray's lawyer were unsuccessful.

Gray took out two crop insurance policies in 2015 on behalf of Gray Farms and Gray Land & Livestock, according to court records.

Gray submitted claims on both policies and reported selling all the wheat, 20,346 bushels, to a granary in Klickitat County. The USDA paid a total of $519,706 on the two policies.

Gray didn't report selling wheat to three other granaries outside the county, including one in Oregon, according to court records.

If he had reported those sales, the insurance payout would have been reduced by $180,429.

Gray denied the allegations and said in a sworn statement that the 35,378 bushels of wheat were grown between 2006 and 2012.

The wheat was purportedly stored in bins on land farmed by Gray Farms and Gray Land. Gray did not ask for a pre-harvest inspection in 2015 to document that he had stored wheat, according to court records.

In his ruling, Rice stated that Gray didn't explain why he had stored wheat for up to nine years, nor why he didn't sell the wheat in Klickitat County, "rather than truck it to three other distant granaries."

Under the False Claims Act, fines are based on tripling the amount falsely gained. Rice also levied the maximum $11,000 fine against Gray and Gray Farms on all counts, driving the judgment past $600,000.

Older

AM Best Upgrades Credit Ratings of Grupo Mexicano de Seguros, S.A. de C.V.; Revises Outlooks to Stable

Newer

Mercy Health sues Anthem in Virginia, alleges $93M in unpaid claims [Springfield News-Sun, Ohio]

Advisor News

  • Help child-free clients plan for their later years
  • When new investment trends emerge, Gen Z is most likely generation to be first in
  • Could ‘plain English’ become an advisor’s secret weapon?
  • IRI urges Senate action on 403(b) parity legislation
  • Three estate planning ideas to protect your clients and their wealth
More Advisor News

Annuity News

  • Nationwide adds mutual fund-linked strategy to New Heights Select FIA
  • NUNN INTRODUCES BILL TO CUT RED TAPE, GIVE IOWANS CLEARER INSURANCE INFORMATION
  • NAIC working group pressed to accelerate annuity illustration overhaul
  • State Auditor James Brown Kicks Off Life Insurance Awareness Month With Policy Locator Tool
  • Wink: Annuity sales post strong Q2, led by MYGAs and structured products
More Annuity News

Health/Employee Benefits News

  • New Managed Care Study Results from Brown University School of Public Health Described (Roles and Priorities Guiding Medicare Advantage Postacute Home Health Referrals): Managed Care
  • Reports Summarize Managed Care Findings from University of Arkansas for Medical Sciences (Potentially Inappropriate Medication Use Following Hospital Discharge Among Medicare Beneficiaries): Managed Care
  • New Cancer Findings from Anuraag R. Kansal and Colleagues Discussed (State Medicaid Budgetary Implications of New Cancers): Cancer
  • 'Not sustainable': Some U.S. small businesses forced to drop health-insurance coverage amid skyrocketing costs
  • These Parkinson’s patients say boxing therapy is a big help. Now their coverage is ending
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • TDCI reminds consumers to focus on future during Life Insurance Awareness Month
  • TDCI reminds consumers to focus on the future during Life Insurance Awareness Month
  • AM Best Affirms Credit Ratings of Zurich Insurance Group Ltd and Its Main Rated Subsidiaries
  • Best’s Market Segment Report: AM Best Maintains Stable Outlook on China’s Non-Life Insurance Segment
  • Understanding Nonequity Split-Dollar
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
  • URL Insurance Group Celebrates 40 Years of Service, Growth, and Industry Leadership
  • MassMutual Ascend Surpasses $2 Billion in Lifetime Advisory Annuity Sales, Reflecting Continued Momentum in RIA Channel
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.