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Press Release

Sioux Falls Man Sentenced for Fraud

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

United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of wire fraud was sentenced on December 11, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.

Randall William McKee, age 58, was sentenced to 41 months imprisonment, to be followed by 3 years of supervised release, and ordered to pay $100 to the Federal Crime Victims Fund.  He was also ordered to pay restitution of $684,230.11.

McKee was indicted for wire fraud and money laundering by a federal grand jury on November 4, 2014.  He pled guilty to one count of wire fraud on August 21, 2015. 

McKee served as trustee for an irrevocable supplemental needs trust that was established to provide for the needs of a disabled person.  McKee wrote checks from the trust’s checking account payable to himself, or to a business he controlled, and then used the funds for his own purposes.  McKee also defrauded investors in a real estate scheme by soliciting investment funds and then using those funds for his own purposes.  Most of this activity occurred while McKee was a resident of Rapid City, South Dakota.

This case was investigated by the Federal Bureau of Investigation.  Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.

McKee was immediately turned over to the custody of the U.S. Marshals Service.

Updated December 17, 2015