United States obtains $607,284 for false crop insurance claims

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YAKIMA, Wash.- U.S. Attorney Vanessa R. Waldref announced that the United States has obtained a $607,284 fraud judgement against Rick T. Gray.

Gray and Gray Farms and Cattle Co. LLC. submitted false and fraudulent claims for crop insurance.

According to Waldref, Gray was liable under the False Claims Act for defrauding the federal crop insurance program.

The Federal Crop Insurance Program is run by the United States Department of agriculture (USDA). The program provides financial protection for farmers who may lose crops due to weather or other factors.

In 2015 Gray submitted false loss claims which provided hundreds of thousands of dollars in indemnity payments.

In August of 2021 a complaint was filed alleging that in 2015 Gray knowingly submitted false claims and made false statements.

Gray falsely flied a loss of more than 35,000 bushels of wheat causing Gray to receive $180,428 in indemnity payments which he was not entitled to according to Waldref.

According to Waldref, the False Claims Act calls for triple the damages be repaid. Gray will face a fine of $607,284 and the maximum penalty

USDA Risk Management Agency Administrator Marcia Bunger said, “We will continue to uphold the public’s trust in the crop insurance program by working closely with the Office of Inspector General, the Department of Justice and other government agencies to ensure the successful investigation and prosecution of cases involving crop insurance fraud, waste and abuse.”

 

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