United States Attorney Ron Parsons announced on July 14 that U.S. District Judge Eric C. Schulte has sentenced Kyle James Loudner and Talyn Ashley Douville, both of Pukwana, South Dakota, to federal prison for embezzlement and theft from an Indian tribal organization. The sentencing took place on June 29 in Sioux Falls.
Loudner, age 40, received a sentence of one year and six months in federal prison followed by three years of supervised release. Douville, age 34, was sentenced to six months in federal prison with three years of supervised release. Both were ordered to pay restitution totaling $160,000.
The two were jointly indicted by a federal grand jury in May 2025. Loudner pleaded guilty on March 30, 2026; Douville pleaded guilty on April 6, 2026. According to court admissions by both defendants, between May 27, 2022, and July 2, 2024—shortly after Loudner was elected to the Crow Creek Sioux Tribe Tribal Council—they established three checking accounts through which nearly $160,000 belonging to the tribe was embezzled via almost one hundred checks payable either to themselves or cash.
“Make no mistake about it,” said Parsons, “Stealing from the government, including tribal governments, will land you in prison.”
The case was investigated by the Federal Bureau of Investigation and the U.S. Attorney’s Office; Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Loudner and Douville are scheduled to report to the U.S. Marshals Service in July to begin serving their sentences.
The U.S. Attorney for the District of South Dakota is responsible for enforcing federal laws throughout its district as well as handling criminal prosecutions and civil cases as the chief law enforcement office for South Dakota; it also supports initiatives that improve public safety and quality of life across its jurisdiction, according to the official website.