Sioux Falls Man Charged with Fraud and Money Laundering
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Wire Fraud and Money Laundering.
Randall William McKee, age 57, was indicted on November 4, 2014, for 14 counts of Wire Fraud and nine counts of Money Laundering. He appeared before U.S. Magistrate Judge Veronica L. Duffy on November 6, 2014, and pled not guilty to the Indictment.
The wire fraud counts have a maximum penalty upon conviction of up to 20 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. The money laundering counts have a maximum penalty upon conviction of up to 20 years in custody and/or a $500,000 fine or twice the value of the property involved in the transactions (whichever is greater), three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered on all counts.
McKee served as trustee for a fund set up to provide for the needs of a disabled person. He is alleged to have written checks from that fund to a business he controlled, and then moved those funds to his own personal bank accounts. McKee is also alleged to have defrauded investors in a real estate scheme by soliciting investment funds and then using those funds for his own purposes. The activity occurred while McKee was a resident of Rapid City, South Dakota.
The charges are merely accusations and McKee is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
McKee was released on bond pending trial. A trial date has been set for January 13, 2015.