Pine Ridge Couple Indicted for Fraud, Larceny, and Embezzlement From the Oglala Sioux Tribe

Rapid City - United States Attorney Ron Parsons announced that a federal grand jury has indicted a Pine Ridge married couple on one count of Conspiracy to Commit Wire Fraud, 14 counts of Wire Fraud, one count of Larceny, and one count of Embezzlement and Theft from an Indian Tribal Organization.

Patrick Fire Thunder and Tracie Renay Gallego, both 51, were indicted in July 2026. They appeared before U.S. Magistrate Judge Mark W. Haigh and pleaded not guilty to the Indictment.

The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, three years of supervised release, and $100 assessment on each count to the Federal Crime Victims Fund. Forfeiture and restitution may also be ordered.

Between November 2022 and November 2024, at Pine Ridge, Fire Thunder and Gallego, both enrolled members of the Oglala Sioux Tribe (OST), acted together to obtain and embezzle checks from OST intended to be paid to Emergency Youth Shelter (EYS) vendors or reimbursement checks from the State of South Dakota to OST for social services provided to youth at the EYS. Gallego was the Administrative Assistant for the EYS and responsible for submitting vouchers to OST for payment to the EYS vendors. After submitting the vouchers and obtaining OST checks for payment to the EYS vendors, Fire Thunder and Gallego deposited the checks into Fire Thunder's personal bank account and then transferred the money to various other accounts and used the money for their own personal benefit.

"Our office is committed to uncovering government fraud at every level and prosecuting those who commit it," said U.S. Attorney Parsons. "It's outrageous that enrolled members of the Oglala Sioux Tribe would be stealing government funds meant to fund essential services for tribal youth. The people deserve better. Our prosecutors look forward to proving these charges in federal court and holding these defendants responsible for their shameless theft."

"As alleged in this case, this scheme to divert scarce funds for the schemers' personal use instead of for the intended use -- to support vulnerable youth in the Pine Ridge Indian reservation -- represents a serious breach of trust and an abuse of safety net programs designed to serve individuals in genuine need," said Special Agent in Charge Linda T. Hanley of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "Protecting federally funded social service programs - including those supporting tribal communities - and the people served by them is central to HHS-OIG's mission. Working closely with our law enforcement partners, we will continue to investigate allegations of fraud to ensure that those who attempt to exploit public resources for personal gain are held accountable."

The charges are merely accusations and Fire Thunder and Gallego are presumed innocent until and unless proven guilty.

The investigation is being conducted by United States Department of Health and Human Services, Office of Inspector General. Supervisory Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.

Fire Thunder and Gallego were released pending trial. A trial date has not been set.