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Press Release

Pierre Man Sentenced for Falsification of Financial Records

For Immediate Release
U.S. Attorney's Office, District of South Dakota

United States Attorney Randolph J. Seiler announced that a Pierre, South Dakota, man charged with Falsification of Financial Records Required to Be Kept by Labor Unions pled guilty and was sentenced on July 14, 2016, by U.S. Magistrate Judge Mark A. Moreno.

Kenneth Potter, age 49, was sentenced to one year of probation, and $25 to the Federal Crime Victims Fund.

The conviction stemmed from an incident that took place between July 1, 2013, and September 30, 2014, in Pierre, when Potter, who was an employee of the South Dakota Education Association and was a member of the National Staff organization, South Dakota Staff Organization (SDSO), which have collective bargaining agreements with the U.S. Department of Labor, issued 13 unauthorized checks, and made 3 unauthorized cash withdrawals, for a total of $4,130. 

At the time of the offense, Potter was the Treasurer of the SDSO.  As treasurer, Potter’s duties included making true and accurate entries in the unions records, and filing reports with the U.S. Department of Labor.

These unauthorized expenses created a loss in the SDSO accounts, which were reported to the National Staff Organization.  The SDSO had an audit preformed of the books, which confirmed the theft by Potter.

The investigation was conducted by the Department of Labor.  The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges. 

Updated July 22, 2016

Financial Fraud