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Canton Man Sentenced to Over 3 Years in Federal Prison for Wire Fraud and Money Laundering
RAPID CITY – In a move to crack down on financial crimes, a Canton, South Dakota man has been sentenced to three years and one month in federal prison for wire fraud and money laundering.
U.S. District Judge Karen E. Schreier handed down the sentence to Gary Aaron King, 51, on December 5, 2025, following his guilty plea on September 5, 2025.
King, the sole owner of Cypress Risk Management, LLC, was found guilty of three counts of Wire Fraud and two counts of Money Laundering. He was ordered to pay a $500 special assessment to the Federal Crime Victims Fund and $1,418,220.87 in restitution.
According to the indictment, between July 2022 and January 2023, King collected insurance premiums from client colleges for student athlete insurance coverage but embezzled the funds for his own personal benefit. Rather than remitting those premiums to the managing general agents as required, King used the funds for another business venture and to purchase a luxury home.
When questioned by the managing general agents regarding the payments on the policies the colleges had purchased, King provided false explanations and sent checks to the managing general agents that were returned as insufficient funds.
“Federal investigators are committed to rooting out fraud wherever it exists,” said U.S. Attorney 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.”
This 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 was ordered to self-surrender to the custody of the U.S. Marshals Service at a future date.
Mandatory Facts: Defendant: Gary Aaron King; Charges: Three counts of Wire Fraud and two counts of Money Laundering; City and State: Rapid City, South Dakota; Date: December 5, 2025; Sentence: Three years and one month in federal prison, followed by two years of supervised release and ordered to pay $500 special assessment and $1,418,220.87 in restitution.
Key Facts
- State: South Dakota
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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