Michigan Farmer To Pay $87,500 To Settle Allegations He Wrongfully Obtained Crop Insurance And Farm Benefits

          GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that David G. Zelmer of  Niles, Michigan, has agreed to pay $87,500 to resolve allegations that he violated the False Claims Act by obtaining federal crop insurance coverage and Farm Service Agency (FSA) benefit payments for crops he did not farm.

          “Michigan farmers depend on federal programs to provide economic security,” said U.S. Attorney Mark Totten.  “But the wellbeing of these programs depends on farmers telling the truth and playing by the rules. My office is committed to working with our law enforcement partners to investigate allegations of false claims to these federal programs.”

          The United States alleges that Zelmer owned and farmed land in Berrien County but entered into a lease agreement with another farmer in 2015 in which he leased certain tracts of that land to the other individual to farm. This lease agreement continued through 2017.  The United States alleges that, despite leasing those farm tracts to the other farmer, Zelmer certified that he was the sole producer of the crops on those farm tracts when seeking benefit payments from the FSA in crop years 2015, 2016, and 2017, when he was not.  The United States further alleges that Zelmer certified that he was the sole producer of the crops on those same farm tracts when obtaining federal crop insurance coverage from the Federal Crop Insurance Corporation, when he was not.

          “The U.S. Department of Agriculture, Office of Inspector General is committed to combatting crop insurance fraud through civil enforcement under the False Claims Act,” said Shantel R. Robinson, Special Agent-In-Charge, United States Department of Agriculture-Office of Inspector General. “Fraudulent activity within the crop insurance program undermines its intent and misdirects taxpayer dollars from which they were intended. We are thankful to the U.S. Attorney’s Office and USDA’s Risk Management Agency for their partnership on this joint investigation, and OIG will continue its mission to investigate allegations of waste, fraud, and abuse in USDA programs.”

          The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan and USDA-OIG and USDA’s Risk Management Agency.

          Assistant United States Attorney Andrew J. Hull prosecuted this case.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

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