Kristi Noem's Family Faces Multiple Scandals Amid Political Downfall
As former Homeland Security Secretary Kristi Noem reels from her abrupt dismissal by President Donald Trump, new revelations expose additional scandals plaguing her immediate family members. The controversies involve both her daughter's professional conduct and her son-in-law's business dealings, creating a compounded crisis for the embattled political figure.
Daughter's Real Estate License Remains Inactive Despite Active Work
Kristi Noem's daughter, Kassidy Noem-Peters, has resumed her career in real estate despite holding an inactive broker associate license according to South Dakota state records. The 31-year-old, who works for Haugan Nelson Realty in Watertown, South Dakota, has been actively marketing properties through social media platforms while her license status remains non-compliant with state regulations.
South Dakota Codified Law section 36-21A-9 explicitly prohibits licensees with inactive status from performing real estate transactions. State records confirm that a broker associate license for "Kassidy Peters" was issued on January 1 of last year but is currently listed as inactive. Despite this legal restriction, Kassidy has posted multiple property listings on Instagram and Facebook throughout 2025, including commercial lots and residential homes.
In June, she posted about "scouting potential commercial lots" for a business expanding to Watertown. By September, she celebrated "closing day on a home with fresh updates" and earlier in July promoted a six-bedroom, 4.5-bath property in Nazel, South Dakota. Her LinkedIn profile indicates she was hired by Haugan Nelson Realty in January of last year, though it remains unclear when her license became inactive or whether she has completed any sales since that change in status.
History of Controversy Surrounding Real Estate Credentials
This is not the first time Kassidy's real estate career has been mired in controversy. In 2021, her mother, then serving as South Dakota governor, allegedly intervened to overturn the denial of Kassidy's real estate appraisal license. State official Sherry Bren testified to lawmakers that she felt "intimidated" during a July 2020 meeting in Noem's office where pressure was applied to reverse the preliminary denial of Kassidy's application.
Following that scandal, Kassidy vowed to leave the industry entirely. In a November 2021 letter to South Dakota Department of Labor Secretary Marcia Hultman, she expressed "disappointment and anger" about damage to her professional reputation and announced plans to surrender her license and dissolve her business. She subsequently spent three years working for religious nonprofits before returning to real estate in 2024.
Son-in-Law Faces Lawsuit Alleging Client Theft
Simultaneously, Noem's son-in-law Kyle Peters, a South Dakota lobbyist and Watertown deputy mayor, faces serious legal allegations from his former employer. Sioux Falls-based firm A1 Development filed a lawsuit on February 19 claiming Peters "wrongfully diverted business" from the company for personal benefit involving at least eleven separate clients.
The legal complaint alleges that Peters, while working as an independent contractor for A1 Development, concealed a major real estate opportunity involving land valued at over $170 million for a data center project. According to the lawsuit, Peters kept this substantial transaction from A1 Development, which is properly licensed as a brokerage firm, while allegedly receiving personal compensation on the side.
Peters' attorney, Steve Landon, has denied all allegations, stating that his client "did not divert any business from A1 Development" and actually brought substantial business to the firm. Landon indicated they are preparing a counterclaim, arguing that A1 Development fabricated allegations to justify withholding commissions owed to Peters' consultancy firm, Bad River Development, LLC.
Previous Lobbying Controversies Resurface
This lawsuit follows previous scrutiny of Peters' lobbying activities. In 2023, he advocated for Advanced Sunflower to receive a $401,085 low-interest loan from the state's East Central Regional Railroad Authority, whose board members are appointed by the governor. At the time, Peters defended his actions, claiming "no conflict of interest" despite his mother-in-law's position as governor and asserting that neither he nor A1 Development received state funds related to the transaction.
Peters currently serves as deputy mayor of Watertown, where he lives with Kassidy and their three children. His recent lobbying clients include data center firm Gemini, energy company Big Watt Digital, carbon sequestration firm Gevo Inc, and Graham Aviation LLC.
Compounding Family Troubles Amid Political Fallout
These family scandals emerge as Kristi Noem herself faces significant political consequences. Her dismissal from the Department of Homeland Security followed criticism of a $220 million recruitment campaign featuring Mount Rushmore, which she claimed President Trump approved but he subsequently refuted. Trump announced Oklahoma Senator Markwayne Mullin as her replacement on Thursday.
The convergence of professional setbacks across multiple family members presents a complex web of controversies for Noem, whose political career has been marked by both achievement and controversy. As these legal and ethical questions unfold, they raise broader concerns about potential abuses of power and proper professional conduct among politically connected families in South Dakota.
The Daily Mail has reached out to Kassidy Noem-Peters for comment regarding her inactive license status and current real estate activities. State authorities have not yet commented on whether any investigation is underway concerning her compliance with real estate licensing requirements.
