GRAND RAPIDS, Mich. (WXYZ) — A 55-year-old Michigan man has been sentenced to 13 months in federal prison for crop insurance fraud, the U.S. Attorney announced Thursday.
Douglas Edward Diekman, of Mendon, was also ordered to serve two years of supervised release and pay $488,432.86 in restitution, according to the court, after pleading guilty to conspiring with Michael Stamp of Stamp Farms to defraud the federal crop insurance program.
According to the United States Attorney's Office, Diekman admitted that he illegally obtained crop insurance for about 1,000 acres of farmland he rented to Stamp Farms. He did not cultivate the land and had no ownership interest in the crops, but still certified that he had full ownership of the land and falsely reported he had crop losses, officials said.
Attorneys said when Stamp Farms declared bankruptcy and not able to pay rent for the land, Diekman kept a crop insurance indemnity payment he was not entitled to.
U.S. Attorney Birge said, “This office will continue to vigorously prosecute people like Mr. Diekman who defraud taxpayer-funded programs such as the federal crop insurance program.”
