Grandmother Sues Fargo After Wrongful Arrest Linked to AI Technology

The city of Fargo, North Dakota is now facing a lawsuit from a grandmother in Tennessee who claims that police used AI facial recognition incorrectly, leading to her wrongful accusation of bank theft and a six-month jail sentence last year.

Angela Lipps, a 50-year-old grandmother with five grandchildren, was arrested at gunpoint by U.S. Marshals in July 2025 while she was taking care of her neighbor’s children in Elizabethton, Tennessee.

Reports revealed that her arrest warrant was based on facial recognition technology that Fargo detectives interpreted as linking her to a fraudulent withdrawal of significant amounts of money from banks in North Dakota.

However, Lipps had never been to Fargo or anywhere in North Dakota. In the lawsuit, she states that up until her extradition to face the charges, she had never even taken a commercial flight.

This crucial information only came to light after she had been held in custody for several months before being transported to North Dakota, as described in the civil lawsuit submitted in the U.S. District Court.

Ultimately, her charges were dismissed, and she was released on Christmas Eve, after presenting evidence that she was in Tennessee during the time of the alleged crimes.

The lawsuit names the city of Fargo and Detective Lucas Heck, who allegedly requested her arrest warrant. It seeks $10 million in damages, aiming to “repair what has been broken” and to hold the Fargo Police Department accountable.

The police department’s facial recognition software matched a photo of Lipps from social media with an image of a fake ID used by a woman involved in the fraudulent activities. Despite this, bank surveillance footage depicted a suspect with noticeably different physical features than Lipps.

The complaint points out that the authorities were aware AI facial recognition should not be the only basis for extraditing someone. Yet, they proceeded without considering the potential harm to innocent individuals like Lipps. Her hope is that her case will encourage more responsible use of such technology, particularly due to its growing prevalence.

Lipps claims in her lawsuit that her wrongful detention came with severe consequences, including “traumatic conditions in the jails.”

She recounts the trauma of not knowing when she might be released, fearing years of wrongful imprisonment. During her time in custody, she missed significant family events, including her own birthday and holidays like Thanksgiving and Christmas. She also faced neglect regarding her basic needs, such as medications and dentures.

Upon her release, she discovered that she had lost her home, car, and other personal belongings, as stated in the lawsuit.

The complaint argues that the ordeal could have been avoided with more diligent police work, claiming Detective Heck did not conduct a thorough investigation before seeking the arrest warrant. It also criticizes the Fargo Police Department for failing to adequately train officers on using facial recognition technology.

The lawsuit asserts that the department understood the risks associated with a lack of oversight when using such technology, but still chose not to supervise its use in criminal investigations.

As a result, Lipps spent several months in a Tennessee jail and was faced with a bail she couldn’t afford, along with threats of an eight-year prison sentence for the alleged bank fraud.

Interestingly, there’s mention of a previous unrelated case that had resulted in complications for Lipps, although the lawsuit does not specify. She had resolved those issues by the time she was extradited to North Dakota.

The incident still lingers in Lipps’s mind, with her now living in fear of being wrongfully detained again, despite knowing she didn’t commit any crime.

So far, the city of Fargo and its police department haven’t publicly addressed the lawsuit, with a spokesperson stating they do not comment on ongoing litigation.

In March, former Fargo Police Chief Dave Zibollski acknowledged during a press conference that errors had occurred during the investigation into the bank fraud. He clarified that while the department does not own facial recognition technology, they do utilize a state intelligence center for unknown person requests. Furthermore, he stated that using facial recognition for probable cause warrants has been banned moving forward, along with promises of increased scrutiny on cases.

Zibollski, who retired shortly thereafter, noted that his detectives were also upset by the wrongful arrest, emphasizing their dedication to thoroughness in their work. “No one wants to see someone detained, arrested unnecessarily,” he commented. “Our goal is to apprehend the right individuals and navigate through the justice system.”