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Tennessee Grandmother Sues Fargo Police Over AI-Misidentification

By Drooid · · How we work

AI-Driven Arrest Leads to $10 Million Lawsuit

Angela Lipps, a 50-year-old grandmother from Elizabethton, Tennessee, filed a federal civil-rights suit seeking $10 million in damages against the City of Fargo and former police detective Lucas Heck. The complaint alleges that Fargo investigators relied on a flawed artificial-intelligence facial-recognition match to arrest Lipps in July 2025 for a series of bank-fraud crimes she never committed. After months of detention in Tennessee and North Dakota, the charges were dismissed, and Lipps was released in December 2025.

Background & Context

In the spring of 2025, a group of suspects used counterfeit military-style IDs to withdraw roughly $70,000 from several Fargo-area banks. West Fargo police and the North Dakota State and Local Intelligence Center ran facial-recognition software on a photo from a fake ID, which incorrectly flagged Lipps’s social-media picture as a possible lead. The complaint says the technology was treated as a positive identification rather than an investigative lead, prompting an arrest warrant request by Detective Heck.

Timeline

  • July 14, 2025 – U.S. Marshals arrested Lipps at gunpoint while she was babysitting in rural Tennessee.
  • June 30, 2025 – North Dakota prosecutors filed eight felony counts related to the bank fraud, each carrying up to ten years in prison.
  • Later in 2025 – Lipps was held for nearly six months, first in a Tennessee county jail and then at the Cass County Jail in North Dakota.
  • December 2025 – After her attorney produced bank records proving she was in Tennessee at the time of the fraud, the charges were dismissed and she was released.

Data & Statistics

  • Bond set at $100,000, which Lipps could not pay.
  • Lawsuit seeks $10 million in compensatory damages, plus punitive damages and attorney fees.
  • Eight felony counts were initially filed.

Official Statements & Responses

Fargo Police Chief Dave Zibolski acknowledged “investigative errors” in a March 2026 press conference and said the department has since prohibited the use of facial-recognition results as sole probable-cause evidence.

On-the-Ground Reports

The complaint describes Lipps’s incarceration as “traumatic,” noting that she missed family birthdays, spent her 50th birthday in a cell, and was denied regular medication and dentures. While detained, she lost her residence, car, and personal property. After release, she was left with only a few cents and a light jacket, relying on a local nonprofit and a neighbor for transportation back to Tennessee.

Verbatim Quotes

  • “Can you imagine being taken away at gunpoint, held in detention, taken from your family?” — Eric Rice, paul-based attorney
  • “There has been no formal retraction of the cloud of suspicion on our client,” — Dane DeKrey, attorney for Angela Lipps
  • “ "This boils down to making the decision to use technology in the tempting way that we all see, which is to believe that it's 100% true and that it's the new way that policing should work," DeKrey said.” — Dane DeKrey, attorney for Angela Lipps

What’s Next

Lipps has requested a jury trial on the civil-rights claims. The lawsuit remains pending, and the City of Fargo has not filed a response as of the latest filing.