SIOUX FALLS, S.D. (KELO) — Two South Dakota farmers have been ordered to pay more than $4 million in a civil judgment tied to crop insurance fraud dating back to 2018 and 2019, according to the U.S. Department of Justice.
James and Levi Garrett, who operated a family farm and ranch in Sully County, falsely certified to their crop insurance company that they planted 2,200 acres of sunflowers in 2018, when in fact they did not plant any sunflowers, and wrongfully received payment as if their entire crop had failed. In 2019, James Garrett falsely claimed he planted 47.5 acres of corn as part of a larger claim, although no corn was planted, again wrongfully receiving indemnity. Prosecutors say the Garretts fraudulently obtained over $1.3 million from these misrepresentations.
On Wednesday, U.S. Chief District Judge Roberto A. Lange entered a civil judgment against both James and Levi Garrett, ordering them to pay a combined total of $4,019,820 to resolve violations of the False Claims Act.
This civil ruling follows the Garretts’ criminal convictions in October 2022 for submitting false statements in connection with federal crop insurance. A jury convicted James Garrett on two counts and Levi Garrett on one count after a six-day trial. In January 2023, James was sentenced to 18 months in federal prison (plus two years of supervised release) and ordered to pay $1,045,544 in restitution. Levi received a 24-month prison sentence (plus two years supervised release) and $279,396 in restitution.
U.S. Attorney Alison J. Ramsdell emphasized that “protecting taxpayer-funded programs from fraud and abuse remains a top priority for our office,” and noted that “we won’t stop at criminal convictions,” underscoring that those who defraud federal programs face both criminal and civil consequences.
The case was investigated by the USDA’s Office of Inspector General and Risk Management Agency, with Assistant U.S. Attorney Alexis A. Warner prosecuting.
