Mich. Farmer Signs Plea in Fraud Case

LINCOLN, Neb. (DTN) -- Springport, Michigan, farmer Gaylord Lincoln pleaded to a lesser charge of theft of public money under $1,000 in connection with a federal investigation into alleged federal crop insurance and farm benefits fraud.

Lincoln was indicted by a grand jury in 2022 on 13 counts, including wire fraud and mail fraud in connection with an alleged scheme to set up so-called sham farming operations using the names of family members and farm employees to apply for and receive additional crop insurance benefits.

As part of the plea agreement signed by Lincoln at the end of September, he could be sentenced to up to one year in prison, ordered to pay up to a $100,000 fine and serve up to one year of supervised release.

One count of federal wire fraud can carry up to 30 years in prison depending on the severity of the crime.

"From March 11, 2019, through March 19, 2019, in the eastern district of Michigan, the defendant, Gaylord Lincoln, knowingly embezzled, stole and converted to his own use, less than $1,000 of money of the Federal Crop Insurance Corporation," according to the plea agreement filed last week in the U.S. District Court for the Eastern District of Michigan.

In July 2024, Lincoln's attorneys filed a motion to dismiss the fraud charges. They argued the activity alleged in the 2022 indictment could have been a "scheme to conceal" from the government the owner of the farm, but it was not a "scheme to defraud" the government of money or property.

In December 2021, the U.S. government filed a complaint alleging Lincoln violated the False Claims Act by maintaining a "scheme to fraudulently" obtain more federal farm benefit program payments than he was entitled to receive, according to the U.S. attorney's office

According to the new plea agreement, Lincoln previously entered into a settlement agreement in the U.S. District Court for the Western District of Michigan.

In that 2021 case, Lincoln agreed to pay the U.S. $1.2 million plus interest for claims that "include specific conduct" in the case.

In September 2022, a federal grand jury handed down indictments, including four counts for making a false statement to obtain crop insurance, five counts of wire fraud and four counts of mail fraud. That same month, U.S. attorneys dropped the 2021 lawsuit as part of the settlement.

Lincoln's farm operates on land across four counties in south-central Michigan, including Calhoun, Eaton, Ingham and Jackson.

According to the indictment, from 2010 to 2019, Lincoln set up "sham farming operations" using the names of family members and farm employees. Lincoln then allegedly took out land leases on farmland using the names of the operators.

In crop insurance applications, acreage reports and loss claims, the indictment said the operators, at Lincoln's direction, allegedly "falsely asserted that they had a 100% share in the insured crops."

The indictment alleges the "sham farming operators" did not have a 100% share in the insured crops because they lacked financial risk in the production of those crops. The indictment alleges Lincoln handled almost all interactions with the crop insurance agency on behalf of the fake farm operators.

Read more on DTN:

"Michigan Farmer Wants Fraud Dismissed," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

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