Alison J. Ramsdell U.S. Attorney | U.S. Attorney for the District of South Dakota
A Canton, South Dakota man has been sentenced to over three years in federal prison for wire fraud and money laundering. Gary Aaron King, 51, received a sentence of three years and one month in prison, followed by two years of supervised release. He was also ordered to pay a $500 special assessment to the Federal Crime Victims Fund and restitution totaling $1,418,220.87.
King was indicted by a federal grand jury in February 2024 on charges of wire fraud and money laundering. He pleaded guilty on September 5, 2025. According to court documents, between July 2022 and January 2023, King collected insurance premiums from client colleges for student athlete insurance coverage through his company Cypress Risk Management, LLC. Instead of forwarding the premiums as required, he used more than $1.4 million for another business venture and to purchase a luxury home.
When questioned about the payments by managing general agents responsible for the policies purchased by the colleges, King provided false explanations and sent checks that were returned due to insufficient funds.
“Federal investigators are committed to rooting out fraud wherever it exists,” said U.S. Attorney Ron Parsons. “This sentence, which includes full restitution for the institutions fleeced by this defendant, is another reminder that the bill for committing fraud will eventually come due and be paid with a term of years.”
The case was investigated by the Internal Revenue Service – Criminal Investigation and Health and Human Services, Office of Inspector General. Supervisory Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
King has been ordered to self-surrender to the custody of the U.S. Marshals Service at a future date.
