United States Attorney Ron Parsons and South Dakota Attorney General Marty Jackley announced on March 26 a joint effort to address fraud against state and federal governments, introducing new initiatives at a press conference held at the Sioux Falls Police Department.
The collaboration aims to protect taxpayer dollars, ensure that government program funding reaches those in need, and prosecute individuals who commit fraud against governmental entities. The officials emphasized that tips from employees, contractors, and citizens are often key in uncovering fraudulent activity.
“Fraud is not a mistake. It is not a technicality. It is not just ‘gaming the system.’ And it is not victimless. It is stealing. And those who steal from the American taxpayer will be held accountable,” said U.S. Attorney Parsons.
Attorney General Jackley added, “South Dakotans deserve a state government that is transparent and free from corruption. I have and will hold offenders accountable.” He also stated, “We will not tolerate fraud that steals from taxpayers. Every dollar recovered is a dollar returned to the public.”
Nationally, the Government Accountability Office estimates annual losses due to fraud range between $233 billion and $521 billion—about three to seven percent of total federal spending—with cumulative improper payments since 2003 totaling roughly $2.8 trillion.
To address these issues locally, the United States Attorney’s Office for South Dakota has created a Government Fraud Unit designed to integrate civil and criminal prosecutors in every case involving government fraud. This unit targets healthcare fraud, procurement or grant abuses, False Claims Act violations, theft from tribal programs or organizations, and financial fraud against federal programs of all types.
The South Dakota Attorney General’s Office has established several accountability programs: the Public Integrity Unit (created by Senate Bill 62), Medicaid Fraud Abuse and Neglect Services—which recovered over $942,000 in 2025—and Cooperative Disability Investigations which achieved significant savings for Social Security and Medicaid/Medicare programs last year.
Recent cases highlighted include convictions for crop insurance fraud resulting in over $4 million in judgments; indictments for theft exceeding $4 million from tribal employment funds; lawsuits under the False Claims Act involving telecommunications contractors; tax preparer schemes with alleged fraudulent returns; superintendent embezzlement at an Indian Education school; as well as multiple state-level prosecutions related to misuse of public funds or services.
Officials encourage members of the public with information about suspected government program frauds to report them confidentially through various channels including law enforcement offices listed on www.justice.gov/usao-sd or via hotlines provided by agencies such as FBI or USDA OIG.
