Two North Dakota farmers indicted in crop insurance fraud

Summarised from 2 outlets · Updated 2 Nov, 18:08 · Archive

Two North Dakota farmers have been indicted on federal charges of hiding harvest data to fraudulently claim crop insurance losses.

Two North Dakota farmers, Daniel Scott Flaten and Derek Scott Flaten, have been indicted on federal charges of hiding harvest data from insurance adjusters to fraudulently claim crop insurance payments for losses that did not occur. A federal grand jury indicted them on one count of conspiracy to make false statements to influence the Federal Crop Insurance Corporation. Daniel Flaten also faces two counts of making false statements, whilst Derek Flaten is also charged with two counts.

According to the indictment, the conspiracy ran from approximately January 2021 to January 31, 2023. During this period, the brothers allegedly collected about $619,130 they were not entitled to on just three crop insurance policies. The government also paid approximately $103,966 in additional subsidies connected to those policies. Between 2016 and 2025, the two insured crops and submitted claims personally and on behalf of others, receiving nearly $15 million in crop insurance payments, subsidies and disaster payments overall, though the indictment does not allege all of that money was improper.

The scheme allegedly involved Daniel Flaten reporting false losses on corn and soybeans, whilst selling some of his corn under Derek Flaten's name and telling grain elevators it came from Derek's fields. This made Daniel's reported production appear lower, and he claimed the shortfall resulted from natural causes such as drought. Derek Flaten or other family members then reported artificially high production, which raised Derek's production history. A higher production history increases the amount of insurance coverage per acre in subsequent years.

How it is being reported

• Two North Dakota farmers indicted in federal crop insurance fraud caseIndictment says they hid harvest data to claim losses on corn, soybeans and dry beansKfyrtv · 2 Nov, 17:22
• Two North Dakota farmers indicted in federal crop insurance fraud caseIndictment says they hid harvest data to claim losses on corn, soybeans and dry beansValleynewslive · 2 Nov, 17:22

In this story: Daniel Scott Flaten · Derek Scott Flaten · North Dakota · Federal Crop Insurance Corporation · U.S. District Court for the District of North Dakota

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