Pukwana, SD Duo Sentenced to Federal Prison for Embezzlement and Theft from an Indian Tribal Organization

SIOUX FALLS - United States Attorney Ron Parsons announced today that U.S. District Judge Eric C. Schulte has sentenced a Pukwana, South Dakota, man and woman, each of whom was earlier convicted of Embezzlement and Theft from Indian Tribal Organization. The sentencing took place on June 29, 2026.

Kyle James Loudner, age 40, was sentenced to one year and six months in federal prison, followed by three years of supervised release. Restitution was also ordered for $160,000.

Talyn Ashley Douville, age 34, was sentenced to six months in federal prison, followed by three years of supervised release. Restitution was also ordered for $160,000.

The two were jointly indicted by a federal grand jury in May 2025. Loudner pleaded guilty on March 30, 2026, and Douville pleaded guilty on April 6, 2026.

Between May 27, 2022, and July 2, 2024, Loudner, an elected official, and Douville, a tribal employee, embezzled approximately $160,000 belonging to the Crow Creek Sioux Tribe.

According to Loudner's and Douville's admissions in court, on May 3, 2022, Loudner was elected to the CCST Tribal Council. Following his election, he and Douville established three different checking accounts. Between May 27, 2022, just weeks after his election, and July 2, 2024, nearly 100 checks were drawn out of government checking accounts that were made payable to Loudner, to Douville, to both defendants, or to cash. Each defendant signed many of these checks, and they embezzled funds totaling $160,000.

"Make no mistake about it," said U.S. Attorney Parsons. "Stealing from the government, including tribal governments, will land you in prison."

This case was investigated by the FBI and the U.S. Attorney's Office. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.

Loudner and Douville will report to the U.S. Marshals Service to begin serving their federal sentences in July 2026.