LINCOLN, Neb. (DTN) -- Springport, Michigan, farmer Gaylord Lincoln's scheduled trial has been delayed by a month after a federal court granted a joint motion for a delay.

Lincoln was indicted by a grand jury in 2022 on 13 counts in connection with a federal investigation into alleged federal crop insurance and farm benefits fraud.

Both sides continue to work on a possible plea agreement, according to court documents, as the trial date has been moved from May 28 to June 25. Both sides had originally asked for an additional 120 days.

"The case involves significant amounts of discovery and the adjournment will allow the parties time to review the discovery, contemplate and prepare pretrial motions, and engage in plea negotiations which could resolve all the issues in this case," according to the joint motion filed in the U.S. District Court for the District of Eastern Michigan.

"The parties agree that such an adjournment serves the ends of justice and outweighs the best interest of the public and the defendant in a speedy trial."

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.

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 lawsuit as part of a settlement agreement.

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

According to the indictment, from 2010-19, 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.

"Defendant further directed the sham farming operators to obtain multiperil crop insurance through FCIC-backed insurers," the indictment said.

"At defendant's direction, these sham farming operators applied for federal crop insurance under their own names."

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.

"In the event that the crop insurance company paid to cover a loss under a policy held by the sham farming operators, this money was placed in the 'joint' accounts controlled by defendant or was paid to the sham farming operators," the indictment alleges.

"The defendant then directed that the money be paid over to him, or the monies were used to fund defendant's sham farming operations."

Lincoln allegedly "fraudulently obtained indemnification" payments from a crop insurance provider.

Read more on DTN:

"Michigan Farmer Faces Federal Trial," https://www.dtnpf.com/…

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

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