Alison J. Ramsdell U.S. Attorney | U.S. Attorney for the District of South Dakota
United States Attorney Alison J. Ramsdell has announced the sentencing of Madonna Peterson, a resident of Martin, South Dakota, for larceny. U.S. District Judge Karen E. Schreier handed down the sentence on January 24, 2025.
Peterson, aged 59, received a sentence of 12 months and one day in federal prison. Following her release, she will be under supervised release for one year. Additionally, she has been ordered to pay a $100 special assessment to the Federal Crime Victims Fund and restitution amounting to $150,000 to the Wild Horse Butte Community Development Corporation (WHB).
In February 2023, Peterson was indicted by a federal grand jury on charges of larceny and embezzlement and theft from an Indian Tribal Organization. She entered a guilty plea on September 30, 2024.
The offenses occurred between 2014 and July 2021 during Peterson's tenure as Chief Financial Officer at WHB. She illegally wrote checks to herself and submitted fraudulent reimbursement claims for non-existent travel and supplies not purchased. The stolen funds were used for personal expenses including gambling at casinos.
The case was investigated by the FBI along with the U.S. Department of Justice Office of the Inspector General. Assistant U.S. Attorney Benjamin Patterson led the prosecution.
Peterson is scheduled to self-surrender on February 18, 2025, to commence her prison sentence.