Saturday, August 8, 2026

Pine Ridge couple indicted for fraud and embezzlement from Oglala Sioux Tribe funds

A Pine Ridge couple faces multiple federal charges related to alleged embezzlement from Oglala Sioux Tribe funds between 2022-2024. Both
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A Pine Ridge married couple has been indicted by a federal grand jury on one count of conspiracy to commit wire fraud, 14 counts of wire fraud, one count of larceny, and one count of embezzlement and theft from an Indian Tribal Organization, according to a July 28 announcement by United States Attorney Ron Parsons.

Patrick Fire Thunder and Tracie Renay Gallego, both 51, were indicted in July 2026. They appeared before U.S. Magistrate Judge Mark W. Haigh and pleaded not guilty to the indictment. The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, three years of supervised release, and a $100 assessment on each count to the Federal Crime Victims Fund. Forfeiture and restitution may also be ordered.

Between November 2022 and November 2024 at Pine Ridge, Fire Thunder and Gallego—both enrolled members of the Oglala Sioux Tribe—allegedly acted together to obtain checks from the tribe intended for Emergency Youth Shelter vendors or reimbursement checks from the State of South Dakota for social services provided at the shelter. Gallego was employed as Administrative Assistant for the Emergency Youth Shelter (EYS) with responsibility for submitting vouchers for payment to vendors. After submitting these vouchers and obtaining tribal checks meant for EYS vendors, Fire Thunder and Gallego allegedly deposited them into Fire Thunder’s personal bank account before transferring funds elsewhere for their own use.

“Our office is committed to uncovering government fraud at every level and prosecuting those who commit it,” said U.S. Attorney Parsons. “It’s outrageous that enrolled members of the Oglala Sioux Tribe would be stealing government funds meant to fund essential services for tribal youth. The people deserve better. Our prosecutors look forward to proving these charges in federal court and holding these defendants responsible for their shameless theft.”

“As alleged in this case, this scheme to divert scarce funds for the schemers’ personal use instead of for the intended use—to support vulnerable youth in the Pine Ridge Indian reservation—represents a serious breach of trust and an abuse of safety net programs designed to serve individuals in genuine need,” said Special Agent in Charge Linda T. Hanley of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Protecting federally funded social service programs—including those supporting tribal communities—and the people served by them is central to HHS‑OIG’s mission. Working closely with our law enforcement partners, we will continue to investigate allegations of fraud to ensure that those who attempt to exploit public resources for personal gain are held accountable.”

The charges are accusations only; Fire Thunder and Gallego are presumed innocent until proven guilty.

The investigation is being conducted by United States Department of Health & Human Services Office of Inspector General along with U.S. Department of Interior Office Inspector General; Supervisory Assistant U.S. Attorney Benjamin Patterson is prosecuting this case.

Fire Thunder and Gallego were released pending trial; no trial date has been set yet.

The U.S. Attorney’s Office serves as chief federal law enforcement office covering all federal criminal prosecutions across South Dakota—including cases involving public safety initiatives—and handles both criminal prosecutions as well as civil cases throughout its district, according to its official website.

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