Daniel Lipsky v. Martin J. Jackley, in his individual capacity as the Attorney General of the State of South Dakota; Thomas Denny Sanford, Sanford Health, a non-profit private corporation; First Premier Bank, a for-profit private corporation; Federal Judge Lawrence Piersol, in individual capacity; Federal Judge Camilla Theeler, in individual capacity; Federal Judge Eric Schulte, in individual capacity; and John and Jane Doe 1-12, currently unknown possible co-defendants.

CourtDistrict Court, D. South Dakota
DecidedMay 5, 2026
Docket4:25-cv-04136
StatusUnknown

This text of Daniel Lipsky v. Martin J. Jackley, in his individual capacity as the Attorney General of the State of South Dakota; Thomas Denny Sanford, Sanford Health, a non-profit private corporation; First Premier Bank, a for-profit private corporation; Federal Judge Lawrence Piersol, in individual capacity; Federal Judge Camilla Theeler, in individual capacity; Federal Judge Eric Schulte, in individual capacity; and John and Jane Doe 1-12, currently unknown possible co-defendants. (Daniel Lipsky v. Martin J. Jackley, in his individual capacity as the Attorney General of the State of South Dakota; Thomas Denny Sanford, Sanford Health, a non-profit private corporation; First Premier Bank, a for-profit private corporation; Federal Judge Lawrence Piersol, in individual capacity; Federal Judge Camilla Theeler, in individual capacity; Federal Judge Eric Schulte, in individual capacity; and John and Jane Doe 1-12, currently unknown possible co-defendants.) is published on Counsel Stack Legal Research, covering District Court, D. South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daniel Lipsky v. Martin J. Jackley, in his individual capacity as the Attorney General of the State of South Dakota; Thomas Denny Sanford, Sanford Health, a non-profit private corporation; First Premier Bank, a for-profit private corporation; Federal Judge Lawrence Piersol, in individual capacity; Federal Judge Camilla Theeler, in individual capacity; Federal Judge Eric Schulte, in individual capacity; and John and Jane Doe 1-12, currently unknown possible co-defendants., (D.S.D. 2026).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF SOUTH DAKOTA SOUTHERN DIVISION

DANIEL LIPSKY, 4:25-CV-04136-RAL Plaintiff, OPINION AND ORDER GRANTING vs. DEFENDANTS’ MOTIONS TO DISMISS MARTIN J. JACKLEY, IN HIS INDIVIDUAL CAPACITY AS THE ATTORNEY GENERAL OF THE STATE OF SOUTH DAKOTA; THOMAS DENNY SANFORD, SANFORD HEALTH, A NON-PROFIT PRIVATE CORPORATION; FIRST PREMIER BANK, A FOR-PROFIT PRIVATE CORPORATION; FEDERAL JUDGE LAWRENCE PIERSOL, IN INDIVIDUAL CAPACITY; FEDERAL JUDGE CAMILLA THEELER; IN INDIVIDUAL CAPACITY; FEDERAL JUDGE ERIC SCHULTE, IN INDIVIDUAL CAPACITY; AND JOHN AND JANE DOE 1-12, CURRENTLY UNKNOWN POSSIBLE CO- DEFENDANTS; Defendants.

Plaintiff Daniel Lipsky alleges one count of the Racketeer Influenced and Corrupt Organizations Act (RICO) against all Defendants for their involvement “in running a massive bribery scheme involving judges and politicians for their own political and financial benefit,” and one count under 42 U.S.C. § 1983 against Defendant Martin J. Jackley for his failure to investigate and intervene in alleged police corruption in Fall River County, South Dakota. Doc. 1. Lipsky seeks injunctive relief as well as compensatory and punitive damages. Id.

Before this Court are five motions to dismiss, filed by five groups of Defendants: (1) Martin Jackley; (2) First Premier Bank; (3) Sanford Health; (4) U.S. District Court Judges Lawrence Piersol,! Eric Schulte, and Camela Theeler?; and (5) Thomas Denny Sanford. Docs. 21, 31, 33, 41,44. The John and Jane Doe defendants have not been identified, and no counsel has entered an appearance on their behalf. Lipsky has not filed memoranda in opposition to any of the five pending motions to dismiss, and his time to do so under the Local Rules for the District of South Dakota has run. See D.S.D. Civ. LR 7.1(B) (“On or before 21 calendar days after service of a motion and brief, unless otherwise specifically ordered by the court, all opposing parties must serve and file a responsive brief containing opposing legal arguments and authorities in support thereof.”).? The Defendants move under Federal Rule of Civil Procedure 12(b)(5) and (b)(6) for insufficient service of process and failure to state a claim. Docs. 21, 31, 33, 41, 44. For the reasons - explained below, Defendants’ motions to dismiss are granted. I. Factual Allegations Lipsky’s Complaint against Defendants incorporates by reference two previous lawsuits that Lipsky has brought in the District of South Dakota, Lipsky v. Cronin, 22-cv-05039-LLP, and Lipsky v. Piersol, 24-cv-05074-CCT. See Doc. 1. While the pleadings and filings from these cases are not attached to the Complaint, when deciding Rule 12(b) motions, courts may “consider

1 The Honorable Lawrence L. Piersol took inactive senior status on July 31, 2025, after thirty-two years as a district judge. Attorney Newsletter August 2025, U.S. Dist. Ct. Dist. S.D. (Aug. 15, 2025), https://www.sdd.uscourts.gov/content/attorney-newsletter-august-2025. ? Lipsky listed as a Defendant, “Camilla Theeler.” The Defendant’s actual name is Camela Theeler. This Court will use the correct spelling of Judge Theeler’s first name. 3 Lipsky has made two other filings on the docket since the first motion to dismiss was filed on October 14, 2025, which this Court has considered. See Docs. 28, 29.

2 .

matters incorporated by reference or integral to the claim, items subject to judicial notice, [and] Matters of public record.” Dittmer Props., L.P. v. FDIC, 708 F.3d 1011, 1021 (8th Cir. 2013) (cleaned up and citation omitted). In 2022, Lipsky brought a federal civil rights lawsuit against the City of Hot Springs and

. several of its police officers for actions arising out of a traffic stop that involved Lipsky (the 2022 case). See 5:22-cv-05039-LLP. During the 2022 case, Lipsky attempted to subpoena the South Dakota Division of Criminal Investigation (DCI). See Doc. 25 in 5:22-cv-05039-LLP. The South Dakota Attorney General’s Office moved to quash that subpoena, which was granted by Magistrate _ Judge Daneta Wollmann. See Docs. 33, 56 in 5:22-cv-05039-LLP. The Defendants moved for - summary judgment in the 2022 case. Doc. 51 in 5:22-cv-05039-LLP. Lipsky did not respond, even after Judge Piersol reminded Lipsky of his failure to respond and extended his time to respond. See Doc. 72 in 5:22-cv-05039-LLP. Judge Piersol dismissed the 2022 case after granting the defendants’ motion for summary judgment. Doc. 87 in 5:22-cv-05039-LLP; see id. at 1 (“This Court has notified Plaintiff three times of his opportunity to respond to the basis of Defendants’ motion for summary judgment and has extended the deadline to respond several times. The Court has delayed judgment long enough and will now rule on the motion based on the supporting materials available to it.”). During the 2022 case against Hot Springs and its officers, Lipsky filed another federal civil rights lawsuit against Judge Piersol alleging Judge Piersol had violated Lipsky’s Fifth Amendment right to due process (the 2024 case). See Doc. 1 in 5:24-cv-05074-CCT. Judge Theeler received assignment of the 2024 case and ultimately dismissed the 2024 case because Judge Piersol was entitled to absolute judicial immunity. See Lipsky v. Piersol, No. 5:24-CV-05074, 2025 WL 990246 (D.S.D. Apr. 2, 2025).

In the present Complaint, * Lipsky alleges the existence of “a massive racketeering bribery conspiracy involving the named defendants[,] [s]pecifically, the payoff of several federal judges, and a sitting South Dakota Senator.” Doc. 1 at 3. Liberally construing the Complaint, Lipsky alleges that Denny Sanford, through various companies including Sanford Health and First Premier Bank, has bribed Judge Piersol and Judge Theeler. Id. at 4-6, 5—6 (“It should be clear at this point that Judges Piersol and Theeler are on Denny Sanford’s payroll.”). Lipsky also alleges that Jackley, who was Sanford’s attorney before returning to be South Dakota’s Attorney General, investigated a state senator causing that senator to resign, and thereby allowed the appointment of a new senator. Id. at 5-6. Lipsky appears to allege that Jackley investigated the state senator at Sanford’s behest, and that the new senator’ then nominated Judge Theeler for her current position as a United States District Judge, potentially in part because Theeler’s husband is an executive at First Premier Bank. Id. Lipsky alleges that “anyone having an adverse interest to Sanford or his octopus of racketeering companies will find themselves in a completely lost position.” Id. at 6. In addition, Lipsky alleges that “Jackley is the manager for Sanford and his companies [sic] racketeering activities in the state of South Dakota.” Id. at 7. Lipsky finally alleges criminal and civil wrongdoing by Sanford personally and Sanford Health, and he includes in his Complaint what

4 This Court summarizes the allegations from Lipsky’s Complaint and is making no factual findings as part of this decision. > State senators of course do not nominate candidates for federal judicial appointments; the President does. United States Senators, but not state senators, have a role in the process of selecting and confirming an Article III federal judge. See Michael A. Fragoso, The Judicial Appointment Process, Harv. J.L. & Public Pol’y Per Curiam, Summer 2024, at 4 (“As the White House considers and evaluates candidates, it will communicate with the home-state [federal] Senators for the judicial vacancy. In the case of district judges, these Senators have functional veto power via the blue-slip process, so their input is critical.”’).

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Daniel Lipsky v. Martin J. Jackley, in his individual capacity as the Attorney General of the State of South Dakota; Thomas Denny Sanford, Sanford Health, a non-profit private corporation; First Premier Bank, a for-profit private corporation; Federal Judge Lawrence Piersol, in individual capacity; Federal Judge Camilla Theeler, in individual capacity; Federal Judge Eric Schulte, in individual capacity; and John and Jane Doe 1-12, currently unknown possible co-defendants., Counsel Stack Legal Research, https://law.counselstack.com/opinion/daniel-lipsky-v-martin-j-jackley-in-his-individual-capacity-as-the-sdd-2026.