Angela Lipps, a Tennesee grandma who was arrested after AI linked her to a bank fraud case in Fargo. (contributed/GoFundMe)
FARGO (KFGO) – The Tennessee woman wrongfully arrested and held at the Cass County Jail for months on bank fraud charges is suing the City of Fargo and the investigator allegedly responsible for using artificial intelligence to identify her as a suspect.
Angela Lipps, 50, is seeking $10 million in compensation for the wrongful accusation, along with a jury trial.
The complaint says in July of last year, Lipps was forcibly taken by agents from her town in Tennessee and taken to Fargo. She was held in jail in Tennessee and in the Cass County Jail for a total of six months. Lipps says she had no idea why she was taken and she had never been to North Dakota until her arrest.
Lipps was identified as a suspect by artificial intelligence face recognition software. The complaint says Fargo Police ignored facts that the software was not reliable.
Lipps alleges that she was denied basic care in jail and did not receive her medications or dentures. She also says she was released from jail with no way to get home and that she lost her home, car and personal property because of the incident.
The complaint filed in Federal Court Tuesday alleges that Lipps’ fourth and fourteenth amendment rights were violated along with her civil rights. It also alleges she was wrongfully arrested and maliciously prosecuted.
In March of this year, former Fargo Police Chief Dave Zibolski defended the department’s prosecution of Lipps.
“Probable cause is that first level to issue charges, that was done in this case. The State’s Attorney reviewed the investigation, issued the charges based on probable cause and referred it for warrant to a judge. The judge in this case reviewed it for probable cause, issued the warrant and also authorized extradition, which doesn’t happen in every case. This is the criminal justice system at work and that’s the process that was followed in Ms. Lipps’ investigation.” Zibolski said.
Case Timeline According to the Fargo Police Department
- Bank fraud crimes occurred in late April/early May
- June 2: Fargo Police sent their investigation to the State’s Attorney’s Office for review of potential charges
- July 1: The State’s Attorney’s Office issued charges, forwarded the case to a judge to issue a warrant. Judge reviews the case, issued the warrant and extradition was authorized
- July 14: Angela Lipps was arrested in Tennessee
- Oct. 20: Cass County was notified by Tennessee that they had a waiver of extradition
- Oct. 30: Lipps is booked into the Cass County Jail. The State’s Attorney’s Office is notified
- Oct. 31: Lipps’ initial court appearance
- Dec. 5: The State’s Attorney told a Fargo Police Detective that Lipps was in custody and had a court-appointed attorney. Zibolski says this is the first time his department was aware that Lipps was in custody
- Dec. 12: Lipps’ attorney told the State’s Attorney they had potentially exculpatory evidence that would require more investigation
- Dec. 19: Interview with Lipps, her attorney, a Fargo Police Detective and the State’s Attorney
- Dec. 23: The detective and State’s Attorney’s Office decided, with the new evidence, it’s not definitive whether Lipps was involved in the bank fraud. She is released from the Cass County Jail.

Fargo Police Chief Dave Zibolski gives update on Angela Lipps investigation on Tuesday, March 24, 2026
Zibolski said at the time that another person had been arrested in connection to the bank fraud charges.
Fargo City Commissioners met in March to discuss in a closed meeting what could possibly happen if a lawsuit was filed against the city.


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