JANUARY 30, 2023:
Two Sully County men convicted of False Statements in Connection with Federal Crop Insurance were sentenced this week (Jan. 30, 2023) in US District Court in Pierre.
68 year old James Garrett was sentenced to 18 months in federal prison, followed by two years of supervised release and ordered to pay $1,045,544 in restitution to the United States.
44 year old Levi Garrett was sentenced to 24 months in federal prison, followed by two years of supervised release and ordered to pay $279,396 in restitution to the United States.
A jury convicted James Garrett of two counts and Levi Garrett of one count following a six-day trial on October 31, 2022.
According to court information, James Garrett and his son Levi Garrett 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. In total, the defendants fraudulently obtained over $1.3 million in total benefits from their crimes.
US Attorney for South Dakota Alison Ramsdell said, “The federal crop insurance program is a vital risk management tool designed to help honest farmers sustain their agricultural productions under difficult circumstances. James and Levi Garrett unlawfully exploited that program and lined their pockets at the expense of taxpayers. Our office is committed to prosecuting any South Dakotan who dishonestly takes advantage of government programs, and we do so in partnership with hard-working investigators like those individuals at the U.S. Department of Agriculture who pursued this case.”
This 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. Attorneys Cameron J. Cook and Alexis A. Warner prosecuted the case.
The defendants were ordered to report to their prison facility as designated by the US Bureau of Prisons.
OCTOBER 2022:
A federal jury has convicted two men from Sully County men on three counts of crop insurance fraud.
James Garrett, age 68, and Levi Garrett, age 44, were found not guilty on four other crop insurance fraud charges and two charges of Major Fraud Against the United States. The verdict was returned Monday (Oct. 31, 2022).
The charges carry a maximum penalty of 30 years in custody and/or a $250,000 fine, five years of supervised release, and a $300 special assessment to the Federal Crime Victims Fund.
Court information says in 2018, the defendants falsely certified to a crop insurance company that they planted 2,200 acres of sunflowers in Sully County. In fact, the defendants did not plant sunflowers, and they wrongfully received a total indemnity from the insurance company of $495,048. In 2019, James Garrett falsely certified he planted 47.5 acres of corn in Sully County. In fact, no corn was planted, and he wrongfully received a total indemnity from the insurance company of $484,405.
This case was investigated by the U.S. Department of Agriculture, Office of Inspector General and the U.S. Department of Agriculture, Risk Management Agency.
A pre-sentence investigation was ordered. The defendants were released pending sentencing. A date has not yet been set.
OCTOBER 2021:
Two Sully County men have been indicted by a federal grand jury for False Statement in Connection with Federal Crop Insurance and Major Fraud Against the United States.
67 year old James Garrett and 43 year old Levi Garrett each pled not guilty.
The Indictment alleges that between 2017 and 2020, in Sully County, James Garrett made a total of four false statements in connection with federal crop insurance, while Levi Garrett made one false statement in connection with federal crop insurance. Additionally, in 2020, James Garrett twice executed a fraudulent scheme to receive money from the Coronavirus Relief Fund, which
was administered by the State of South Dakota through the Small Business Grant Program.
The maximum penalty each defendant faces if convicted is up to 30 years in federal prison and/or a $1 million fine, five years of supervised release and payment of $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Both Garretts were released on bond pending trial, which as been set for Feb. 15, 2022.
The investigation is being conducted by the US Department of Agriculture, Office of the Inspector General and the Risk Management Agency. Assistant US Attorney Cameron J. Cook is prosecuting the case.
Earlier this year (May 17, 2021), the United States Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web
Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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