SIOUX FALLS, S.D. — A former South Dakota insurance salesman is now facing federal charges.
Gary King of Cypress Risk Management is accused of collecting hundreds of thousands of dollars in insurance premiums from colleges and universities, and never passing that money on to insurance providers.
According to a 15-page federal indictment, Gary King of Cypress Risk Management faces charges of wire fraud, money laundering, bank fraud, and mail fraud.
King owned and operated Cypress Risk Management LLC, which sold insurance to cover student-athletes at colleges and universities in South Dakota and other states. King allegedly received premiums that he failed to remit to the insurance companies he was working with, according to documents from Minnehaha County court, the state Division of Insurance, and the state Office of Hearing Examiners. About $1.5 million of that money remained outstanding as of March, according to the Office of Hearing Examiner documents. The Division of Insurance documents say at least 625 South Dakota student athletes were affected
For instance, King allegedly got paid $162,000 from Hastings College and deposited that money into his own bank account for personal use.
There’s another check for $95,000 from Morningside University that he also allegedly deposited into his own bank account.
He allegedly used some of the money to be a part of a group that had an interest in the Midnight Star Casino in Deadwood.
He was also a major participant in Rushmore Gaming.
But the South Dakota Commission on Gaming revoked his license due to the allegations.
Last year, the state of South Dakota also revoked his insurance license.
It’s alleged of the $1.4 million dollars King received in premiums, he spent $1.2 million of it for his own personal benefit.
He also faces a handful of civil lawsuits from the alleged victims.
