Steven Arthur Knigge, Bank Fraud, Money Laundering, Wire Fraud, South Dakota 2022

A Rapid City man has been accused of running a scheme to defraud local banking institutions for his own personal gain.

According to federal prosecutors, Steven Arthur Knigge, 76, devised a plan to commit bank fraud and money laundering between April 2021 and October 2021. The scheme also involved filing a fraudulent application under the Paycheck Protection Program.

Knigge was indicted by a federal grand jury in July 2022 on five counts of Bank Fraud, eight counts of Money Laundering, and one count of Wire Fraud.

He appeared before U.S. Magistrate Judge Veronica L. Duffy on August 3, 2022, and pleaded not guilty to the Indictment.

The maximum penalty upon conviction is 30 years in federal prison and/or a $500,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.

The investigation is being conducted by the Internal Revenue Service-Criminal Investigations. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.

Knigge was released pending trial. A trial date has been scheduled for October 11, 2022.

The charges are merely an accusation and Knigge is presumed innocent until and unless proven guilty.

Source: https://www.justice.gov/usao-sd/pr/rapid-city-man-charged-multiple-counts-fraud-and-money-laundering