Sioux Falls man sentenced to 5 years in federal prison for conspiracy to commit money laundering

Date: March 30, 2026

Contact: [email protected]

Sioux Falls - United States Attorney Ron Parsons announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota man convicted of Conspiracy to Commit Money Laundering. The sentencing took place on March 16, 2026.

Gregory Henderson was sentenced to five years in federal prison, followed by three supervised releases, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.

Gregory Henderson was indicted for Conspiracy to Distribute a Controlled Substance and Conspiracy to Commit Money Laundering by a federal grand jury in May of 2024. On Dec. 4, 2025, he was found guilty at trial of the Conspiracy to Commit Money Laundering and acquitted of the Conspiracy to Distribute a Controlled Substance.

The case involved Henderson moving money on behalf of a drug trafficking organization, by sending drug proceeds via multiple electronic means, including CashApp, to individuals identified by his co-conspirators, in order to conceal the fact that the money was derived from the sale of narcotics and to conceal the ownership of the funds.

The drug trafficking organization that Henderson laundered funds for was led by Darrell Devorce. The group trafficked methamphetamine from California to South Dakota over multiple years. Devorce coordinated loads of methamphetamine to be driven to South Dakota by multiple different couriers. He also directed multiple people from South Dakota to electronically send money to people in California who were associated with him. In total, the Devorce drug trafficking organization was responsible for trafficking approximately 200 pounds of methamphetamine and laundering over $700,000. The investigation resulted in the convictions of 13 defendants in federal court.

"This case is a continuation of the outstanding efforts by federal law enforcement agents to follow the money as it is sought to be laundered by drug trafficking organizations," said U.S. Attorney Parsons.

"This case is another great example of what happens when we combine resources with our law enforcement partners," said IRS-CI Special Agent in Charge William Steenson. "Anyone involved in putting dangerous drugs onto our streets needs to be tracked and stopped. Finding the funding source of the drug trafficking operation is what IRS-CI special agents do best."

This case was investigated by IRS - Criminal Investigation and Homeland Security Investigations. Assistant U.S. Attorney Mark Hodges and Connie Larson prosecuted the case.

Henderson was immediately remanded to the custody of the U.S. Marshals Service.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department's Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN). Through PSN, the District of South Dakota seeks to bring together all levels of law enforcement and the communities they serve to reduce gun violence and make our neighborhoods safer for everyone.

IRS-CI is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. It is the only federal law enforcement agency with investigative jurisdiction over violations of the Internal Revenue Code. IRS-CI has 18 field offices located across the U.S. and maintains an international presence through attaché posts abroad.