SIOUX FALLS - United States Attorney Ron Parsons and South Dakota Attorney General Marty Jackley held a joint press conference Thursday in Sioux Falls to highlight new federal and state initiatives to combat the serious problem of fraud committed against state and federal governments and government programs.

The U.S. Attorney’s Office and South Dakota Attorney General’s Office are working together toward the same goals: protecting taxpayer dollars, ensuring government program funding goes to the people in need of assistance, and prosecuting those who steal from state, federal, or tribal governments. Alongside law enforcement and agency partners, the U.S. Attorney’s Office and South Dakota Attorney General’s Office work together to detect, root out, and prosecute fraudulent conduct. Tips and leads from employees, contractors, and concerned citizens are often how fraud is first discovered.

“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.

“South Dakotans deserve a state government that is transparent and free from corruption,” said Attorney General Jackley. “I have and will hold offenders accountable.”

NATIONAL CONTEXT: THE SCALE OF THE PROBLEM
According to the Government Accountability Office (GAO), the federal government loses an estimated $233 billion to $521 billion every year to fraud — representing 3% to 7% of total federal spending. Since 2003, cumulative improper payments have totaled approximately $2.8 trillion. In fiscal year 2024 alone, 16 federal agencies reported $162 billion in improper payments across 68 programs.
The federal multi-agency crackdown on benefit fraud in Minnesota—which resulted in charges against 98 defendants and 64 convictions to date—demonstrated the effectiveness of coordinated enforcement across multiple agencies. The new national DOJ Fraud Enforcement Division created under the Trump Administration is modeled on that effort and dedicated to combating fraud—both criminal and civil—in every federal program, in every state. On March 24, 2026, Assistant Attorney General Colin McDonald was confirmed by the United States Senate to lead that division.

SOUTH DAKOTA ATTORNEY GENERAL’S OFFICE PROGRAMS
Attorney General Marty Jackley has three programs that promote government accountability within South Dakota: the Public Integrity Unit, Medicaid Fraud Abuse and Neglect Services, and Cooperative Disability Investigations.
South Dakota’s Public Integrity Unit was established through Senate Bill 62, which was proposed by Attorney General Jackley, passed by the 2025 Legislature, and signed by Governor Larry Rhoden. The legislation created mandatory reporting requirements for state employee misconduct and provided protection for employees who make good faith reports to authorities.
In its first year, the unit received 58 reports that resulted in 16 investigations, nine substantiated allegations, and four individuals charged. A yearly report will be presented to the legislative Government Operations and Audit Committee. This year’s Public Integrity Report can be found at: https://atg.sd.gov/docs/January%202026%20Public%20Integrity%20Report%20to%20GOAC.pdf
Medicaid Fraud, Abuse and Neglect Services recovered $942,248.56 in 2025, while the office’s Cooperative Disability Investigations program was ranked the sixth most productive unit in the country for Fiscal Year 2025. The program recorded $4.5 million in Social Security Program Savings and $2.9 million in Medicaid/Medicare Program Savings.
“We will not tolerate fraud that steals from taxpayers,” said Attorney General Jackley. “Every dollar recovered is a dollar returned to the public.”

HOW TO REPORT FRAUD
Members of the public who have information about fraud against federal programs are encouraged to come forward. Reports can be made confidentially.
• U.S. Attorney's Office, District of South Dakota: (605) 330-4400 (Sioux Falls); (605)
224-5402 (Pierre); (605) 342-7822 (Rapid City) | www.justice.gov/usao-sd
• South Dakota Division of Criminal Investigation: (605) 773-3331
• FBI: tips.fbi.gov | 1-800-CALL-FBI
• USDA OIG (crop/food programs): 1-800-424-9121
• HHS OIG (Medicare/Medicaid): 1-800-HHS-TIPS
• GAO FraudNet: gao.gov/fraudnet | fraudnet@gao.gov | (800) 424-5454
Individuals with inside knowledge of fraud against the government may also be eligible to file a qui tam lawsuit under the False Claims Act and may receive between 15% and 30% of any government recovery. Federal law prohibits retaliation against whistleblowers.