United States Attorney Ron Parsons and South Dakota Attorney General Marty Jackley announced on March 26 a joint initiative to address fraud against state and federal governments during a press conference at the Sioux Falls Police Department.
The collaboration aims to protect taxpayer funds, ensure that government program resources reach those in need, and prosecute individuals who commit fraud against public agencies. Both offices are working with law enforcement partners to detect, investigate, and prosecute fraudulent activities, often relying on tips from employees, contractors, or concerned citizens.
“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 said: “South Dakotans deserve a state government that is transparent and free from corruption. I have and will hold offenders accountable.”
The U.S. Attorney’s Office has created a Government Fraud Unit that brings together civil and criminal prosecutors for cases involving government fraud, including healthcare fraud, procurement violations, theft from tribal programs, financial crimes against federal programs, and False Claims Act violations. This unit works closely with the new national Fraud Enforcement Division at the Department of Justice in Washington D.C., which was established following coordinated enforcement efforts in Minnesota resulting in numerous convictions for benefit fraud.
On the state level, Jackley highlighted three programs: Public Integrity Unit (created through Senate Bill 62), Medicaid Fraud Abuse and Neglect Services (which recovered over $942 thousand last year), and Cooperative Disability Investigations (ranked sixth nationally for productivity). The Public Integrity Unit received 58 reports in its first year leading to several investigations and charges; its annual report can be found online.
Recent cases include criminal convictions for crop insurance fraud totaling over $4 million; indictments related to theft from tribal employment offices exceeding $4 million; lawsuits under the False Claims Act involving telecommunications contractors; tax preparer schemes; embezzlement by school superintendents; as well as various state-level prosecutions ranging from Medicaid fraud to employee misconduct within public agencies.
Jackley said: “We will not tolerate fraud that steals from taxpayers. Every dollar recovered is a dollar returned to the public.”
Officials encouraged anyone with information about suspected government program fraud to contact their offices or other relevant agencies confidentially.
