North Dakota Man Sentenced To Probation In Potato Farming Fraud Case

Chief Judge Peter D. Welte of the United States District Court, District of North Dakota, has sentenced Darren Wade Tronson, a 59-year-old resident of Buxton, North Dakota.

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Tronson has been given a one-year probation for intentionally hiding important information in a case that falls under the jurisdiction of the United States government. The imposition of the penalty against Tronson concludes the last remaining legal matter pertaining to him and his potato farming enterprise, encompassing three civil proceedings and one criminal case.

As a resolution to the four cases, Tronson will waive a $272,365 payment for crop insurance in 2019, provide $10,000 restitution to the United States for settling his potato claims in 2017 and 2018, be prohibited from participating in any federal programs for ten years, and undergo one year of supervised probation.

Upon investigation, it was discovered that Tronson engaged in potato cultivation in Grand Forks and Traill Counties, North Dakota, from 2017 to 2019. Additionally, Tronson procured yield-based multi-peril crop insurance plans specifically for his potato crops from his insurance provider.

Tronson reported substantial financial losses in each of the three years, attributing them to purportedly unfavorable weather conditions. In February 2019, Tronson's crop insurance provider held a meeting with him to address the unusual losses he experienced in 2017 and 2018.

During the meeting, the insurance provider emphasized the importance of Tronson engaging agricultural experts and implementing a soil fertility plan as part of standard farming practices. These measures were necessary for Tronson to be eligible for compensation in the event of any future losses covered by his federal crop insurance policy.

Tronson failed to comply with the advice and instead attempted to hide the true reason for his potato crop failure in 2019, leading to the criminal prosecution.

Tronson experienced a decline in his potato harvest for the year 2019, and he filed a claim for compensation under his crop insurance policy solely based on the amount of rainfall. Nevertheless, Tronson intentionally neglected to inform his insurer that he did not adhere to the suggestions about soil fertility for the 2019 crop season.

Tronson's insurer rightfully rejected over 50% of Tronson's crop insurance claim in 2019 due to Tronson's failure to adhere to the suggested good farming practices.

The initial civil lawsuit was similarly predicated on the agricultural season of 2019. Furthermore, Tronson initiated legal action against the United States on behalf of his company, DL Farms, LLC, in an effort to reclaim the withheld 2019 indemnities while also engaging in the unlawful act of concealing the true reason for his financial loss.

Judge Welte, in rejecting his assertions and ruling in favor of the United States, stated that RMA made a logical decision after considering the important factors. This decision was based on DL Farms' failure to perform a soil test before the 2019 planting season and the evidence indicating that the fertilization method used was inadequate in terms of both phosphorous and potassium.

Tronson was obligated to relinquish an extra $272,365 payment for crop insurance indemnity in 2019, as per the Court's ruling.

The second civil complaint was filed against Tronson due to his noncompliance with sound agricultural standards between the years 2017 and 2018. In 2017 and 2018, Tronson’s insurer reimbursed all of his potato claims, despite evidence that the weather was not the true source of his losses.

In a civil lawsuit, the United States accused Tronson of providing false information regarding the true reason for his losses during those years. His failure to follow the necessary farming techniques as outlined in the pertinent policies was the actual cause of his losses.

Following the submission of its complaint, the United States successfully negotiated a settlement with Tronson and his corporation to resolve the allegations from 2017 and 2018. Tronson reached a settlement with the United States, where he agreed to pay $10,000 and voluntarily be barred from all federal programs, such as crop insurance and other farm programs, for a duration of ten years.

In return, the United States dropped its action against him.

"Crop insurance fraud is a significant offense that negatively impacts taxpayers and honest producers," stated Schneider. "This outcome serves as a reminder that fraudulent activities will be uncovered, thoroughly examined, and addressed through both criminal and civil means."

The USDA Office of Inspector General and our office's career prosecutors and civil litigators should be commended for ensuring that justice was served.

The United States Department of Agriculture, Risk Management Agency (RMA), plays a crucial role in meeting the requirements of farmers after a disaster through its commercial partnerships.

The occurrence of fraudulent behavior and the failure to adhere to sound farming standards impair the effectiveness of this program and divert taxpayer monies from their intended purposes.

Acting Special Agent in Charge Robert J. Springer of USDA-OIG stated that the goal of the USDA-OIG is to examine claims of wastefulness, deceit, and misuse in USDA programs.

RMA Administrator Marcia Bunger stated that the crop insurance program will maintain the public's confidence by collaborating with the Office of Inspector General, the Department of Justice, and other government agencies to effectively investigate and prosecute instances of crop insurance fraud, waste, and abuse.

The court's ruling in this case should function as a potent deterrent to anyone who may consider engaging in similar conduct.

During the period when the criminal charges were still being processed, Tronson was issued a Notice of Suspension from Participation in United States Government Programs. The fourth case, in which he challenged the suspension, was promptly dismissed once it was submitted.

The implementation of his ten-year program ban will commence on January 1, 2023, coinciding with the initial year of his interim suspension.

The USDA Office of Inspector General and the Risk Management Agency conducted an investigation into this situation. Assistant U.S. Attorney Matthew Greenley from the District of North Dakota handled the prosecution of the criminal case.

Assistant U.S. Attorneys Michael D. Schoepf and Melissa Helen Burkland were responsible for managing the civil cases.