Former Sisseton Wahpeton Housing Authority Officials Plead Guilty to Stealing More Than $3.5 Million in Federal Housing Funds

Northeast Radio SD News – Sisseton, SD - Two former officials of the Sisseton Wahpeton Housing Authority (SWHA) have pleaded guilty in federal court to conspiring to steal millions of dollars in federal housing funds intended to support vulnerable residents of the Sisseton-Wahpeton Oyate community.

Eric Shepherd, 53, of Wilmot, and Olivia Locke, 60, of Sisseton, appeared before U.S. District Judge Charles B. Kornmann on August 3 and entered guilty pleas to Conspiracy to Commit Theft from a Program Receiving Federal Funds, according to the U.S. Attorney’s Office for the District of South Dakota. The charge carries a maximum penalty of five years in federal custody, a $250,000 fine, and a $100 special assessment. Restitution may also be ordered.

Shepherd served as SWHA’s executive director from September 2019 through July 2025, while Locke was the agency’s chief financial officer. Federal investigators say the pair issued and cashed more than $3.5 million in unauthorized SWHA checks for their personal benefit during that period.

“Stealing from the government is stealing from the American people,” U.S. Attorney Ron Parsons said in the announcement. “Our federal prosecutors are dedicated to ensuring that criminals like these are caught and sentenced to federal prison, so it becomes abundantly clear that crime does not pay.”

HUD Office of Inspector General Special Agent in Charge Machelle Jindra said the fraud diverted critical resources meant to assist residents most in need.

“This is not an isolated act of misconduct but a deliberate effort that diverted millions of dollars in critical resources designed to assist those most in need,” Jindra said.

The case was investigated by the FBI, the U.S. Attorney’s Office, and HUD OIG. Assistant U.S. Attorney Carl Thunem is prosecuting the case.

A presentence investigation has been ordered, and sentencing for both defendants is scheduled for November 9, 2026. Shepherd and Locke remain detained pending sentencing.

Read more local & state news at www.northeastradiosd.com/news

Subscribe to the DAILY newsletter & download the LOCAL online RADIO app - https://zurl.co/FchgS