Fargo Police Arrest Wrong Woman on Faulty Facial Recognition Match in Bank Fraud Case

U.S. marshals arrested Angela Lipps at her Tennessee home in July 2025 over a bank fraud case in Fargo, North Dakota. The 50-year-old grandmother from Elizabethton had never visited the state or flown on a plane.

Lipps remained in custody until Christmas Eve 2025, more than five months later, when charges were dismissed. Investigators had matched surveillance footage from the fraud -- involving a false military ID to withdraw account funds -- with her driver's license and social media photos using facial recognition software.

Fargo defense attorney Jay Greenwood, who represented Lipps, said the images came from poorly placed overhead security cameras. "They had security footage of some terribly placed security cameras from above," Greenwood said. "And they had a couple of still images, poor still images from these cameras that they sent to a company to do facial recognition."

Detectives reviewed her social media and obtained an arrest warrant without further checks, Greenwood said. Marshals took Lipps into custody at gunpoint while she babysat children in Carter County. She told authorities immediately she had never been to North Dakota and rarely left a 100- to 200-mile radius of Elizabethton.

Tennessee authorities held her until late October, when she waived extradition. She flew to North Dakota for the first time, in custody, around Halloween. Fargo Police Chief Travis Stefonowicz said Lipps also faced a probation violation in Tennessee, which may have delayed her transport. Cass County Sheriff's Office learned of her availability on October 20, 2025.

Lipps' first court appearance in North Dakota came on October 31. The assigned detective did not learn of her arrival until December 5. Her attorney approved an interview on December 19. The next day, police, the Cass County state's attorney and a judge dismissed charges without prejudice on December 23 to allow more investigation. Lipps left Cass County Jail on December 24.

Greenwood proved her whereabouts with bank records showing Social Security deposits and local purchases like Uber rides, cigarettes and gas near Elizabethton during the fraud period. "She was in Elizabethton and the surrounding communities depositing her Social Security checks," he said. "Buying Ubers, cigarettes, gas, all that stuff."

Stefonowicz said a warrant issuance showed probable cause from the state's attorney and a judge. Fargo Police does not own facial recognition tools or contract vendors directly but submits inquiries to state and national intelligence centers, including the North Dakota State Intelligence Center, an AI function former Chief Dave Zibolski described.

The department conducted an internal review. Zibolski addressed it at a March 24 news conference, noting areas where the initial probe fell short. Stefonowicz became interim chief March 30 after Zibolski's family-related retirement and took the permanent role May 11.

Fargo Police adopted Policy 610 on facial recognition use March 25. "This case has prompted FPD leadership to re-evaluate that approach related to having a specific FRT policy," Stefonowicz said. The case remains open as police seek the real fraud suspect.