GRAND RAPIDS – Gaylord D. Lincoln and G. Lincoln Farms, LLC, located in Springport,
Michigan, have agreed to pay $1,200,000 to resolve allegations that they violated the False Claims
Act by causing the submission of fraudulent claims for federal crop insurance and federal farm
benefit payments. The settlement amount was negotiated based on the defendants’ ability to pay.
U.S. Attorney Mark Totten stated, “Michigan farmers depend on federal programs to provide
economic security, and these agricultural programs are essential to the national wellbeing. But, in
turn, USDA relies on farmers to tell the truth and play by the rules. My office is committed to
working with our law enforcement partners to root out fraud on these programs.”
This settlement resolves civil claims the United States brought against the defendants in a December
2021 lawsuit. In its complaint, the United States alleged that the defendants defrauded the U.S.
Department of Agriculture’s (“USDA”) Farm Service Agency (“FSA”) by operating a scheme to
avoid benefit program payment limitations. Specifically, the United States alleged that the
defendants placed their farmland and crops in the names of their employees, who served as a facade
for 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 the defendants. The United
States further alleged that defendants 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.
Shantel R. Robinson, Special Agent-In-Charge, United States Department of Agriculture-Office of
Inspector General (“USDA-OIG”), said, “The United States Department of Agriculture is committed
to combatting crop insurance fraud through civil enforcement under the False Claims Act.
Fraudulent activity within the crop insurance program undermines its intent and misdirects taxpayer
dollars from where they were intended. The United States Department of Agriculture, Office of
Inspector General will continue its mission to investigate allegations of waste, fraud, and abuse in
USDA programs.”
This settlement follows a related March 2022 civil settlement with the insurance agent and insurance
agency that worked with the defendants.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S.
Attorney’s Office for the Western District of Michigan, USDA-OIG, and USDA’s Risk Management
Agency. Assistant U.S. Attorney Andrew J. Hull represented the United States.
The complaint and other filings in this case can be found on the Court’s online docket under United
States v. Lincoln, No. 1:21-cv-1089 (W.D. Mich.).
The claims resolved by the settlement are allegations only, and there has been no determination of
liability
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