A therapist charged with sexually abusing a 13-year-old patient allegedly has a “long history” of complaints related to his conduct, despite there being no public record of any licensing sanctions against him.
On May 30, O’Brien County prosecutors charged therapist Martin W. Wallace, 75, of Sibley with two felonies: sexual abuse in the second degree, and sexual exploitation by a therapist. Wallace was also charged with the misdemeanor offense of lascivious acts with a child.
According to police, Wallace had improper contact with a 13-year-old male patient on multiple occasions inside his Sheldon office – placing a vibrating toothbrush in the child’s pants, kissing the youth, and pulling down the child’s pants and underwear.
Sheldon police also allege that during a May 16 search of the office, Wallace was asked to provide records related to the alleged victim’s care and steered police to a different set of records pertaining to the alleged victim’s brother. During the search, police said, they left Wallace unattended in a therapy room, then heard sound of a shredder running inside the room. Officers intervened and asked Wallace what he had just shredded, and he allegedly replied, “I don’t know, it was just a paper from the desk.”
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Days later, a former intern at the therapy office allegedly told police about records that were stored on a computer that was different from the one Wallace had given to police. The intern also reported that Wallace used video cameras in the office – something Wallace had allegedly denied during the course of their initial search.
Based on the new information, police conducted a second search of the office and discovered two cameras, including one that officers described as a “very small, magnetic hidden camera stuck to a lamp in the corner of the patient room.”
During that same search, officers asked Wallace for his cell phone, which he allegedly claimed to have left at home. Court records indicate Wallace then left the building and approached his vehicle, which was parked outside the office. Police reported they saw Wallace retrieve his phone, at which point they seized the device, which was displaying messages that appeared to be of a sexual nature.
Police records indicate Wallace has been accused of misconduct in the past, although there’s no public record of state licensing officials taking any action against him prior to his arrest.
In a written communication with the court, one Sheldon police officer involved in the investigation asserted that he had reviewed an “investigative report” from the Iowa Department of Inspections, Appeals and Licensing, which administers the state’s licensing boards. The report dealt with past complaints about Wallace’s conduct.
“Wallace has a long history of complaints about boundary issues with clients,” Sheldon Police Sgt. Eric Meinecke told the court. “Some notable complaints involved an intern in 2012 seeing an image of two naked men on Wallace’s work computer at the Creative Living Center; Wallace and a client being seen lying on the floor together in 2017; numerous complaints about Wallace’s communication with clients outside of business hours; and a report of Wallace using cameras in the Creative Living Center, hidden and without permission.”
Prior to working at the Creative Living Center, Wallace spent 13 years working as a school counselor for the Sibley-Ocheyedan School District.
On June 6, one week after the criminal charges were filed against Wallace, the Iowa Board of Behavioral Science issued an emergency order suspending Wallace’s license and charging him with engaging in sexual activity with a patient.
A hearing on the board charges is scheduled for July 30. In the criminal case, Wallace recently entered a plea of not guilty. A trial date has yet to be scheduled.
Where U.S. residents are experiencing the most financial instability
Where U.S. residents are experiencing the most financial instability

Inflation has hurt Americans financially in different ways, with the U.S. Census Bureau reporting that up to 45.8% of some households are having difficulty paying for essentials. In particular, inflation has put some Americans at higher risk for financial instability.
With this in mind, SmartAsset ranked U.S. states according to where residents are struggling most financially. Data measures poverty rates, food insecurity, housing insecurity and elements of unemployment and unemployment benefits.
Key findings
- Louisiana residents hurt the most financially for two consecutive years. The Bayou State residents have the most food insecurity, with 17.8% of the population not having enough food in the house to eat. At 18.6%, they also have the second-highest rate of poverty. Unemployment is also relatively high at 4.2%, and 36.6% of residents are in danger of foreclosure or being evicted.
- Tennessee ranked second for residents hurting financially. This was in large part dueto rampant housing and food insecurity, which were respectively second- and third-worst studywide at 50.5% and 17.8%.
- 19.1% of Mississippi residents are in poverty. Ranking third overall, Mississippi has the highest poverty rate nationwide. The average poverty rate across all states is 12.4%. On the other end of the spectrum, New Hampshire has the lowest poverty rate at 7.2%.
- California has the highest unemployment rate. With the rate the same as it was two years ago, 5.3% of the Golden State’s labor force is unemployed. And the rate at which unemployment benefits make up for residents’ wages is also sixth-lowest at 28.2%.
- New Mexico residents face the most food scarcity. A whopping 57.6% of New Mexicans report not having enough food to eat in the house over the past week, putting the state in eighth place overall.
10 places where residents are hurting most financially

- Louisiana
- Poverty rate: 18.6%
- Unemployment rate, 2024: 4.2%
- Two-year change in unemployment: -0.1%
- Unemployment benefits replacement rate: 29.9%
- Housing insecurity: 36.6%
- Food scarcity: 17.8%
- Tennessee
- Poverty rate: 13.3%
- Unemployment rate, 2024: 3.3%
- Two-year change in unemployment: -0.1%
- Unemployment benefits replacement rate: 27.2%
- Housing insecurity: 50.5%
- Food scarcity: 15.6%
- Mississippi
- Poverty rate: 19.1%
- Unemployment rate, 2024: 3.1%
- Two-year change in unemployment: -1.4%
- Unemployment benefits replacement rate: 29.9%
- Housing insecurity: 33.1%
- Food scarcity: 15.4%
- Alaska
- Poverty rate: 11.0%
- Unemployment rate, 2024: 4.6%
- Two-year change in unemployment: -0.7%
- Unemployment benefits replacement rate: 26.7%
- Housing insecurity: 48.3%
- Food scarcity: 12.1%
- Oklahoma
- Poverty rate: 15.7%
- Unemployment rate, 2024: 3.6%
- Two-year change in unemployment: 1.0%
- Unemployment benefits replacement rate: 42.6%
- Housing insecurity: 43.4%
- Food scarcity: 15.6%
- Georgia
- Poverty rate: 12.7%
- Unemployment rate, 2024: 3.1%
- Two-year change in unemployment: -0.1%
- Unemployment benefits replacement rate: 29.0%
- Housing insecurity: 41.2%
- Food scarcity: 12.1%
- Arizona
- Poverty rate: 12.5%
- Unemployment rate, 2024: 4.1%
- Two-year change in unemployment: 0.5%
- Unemployment benefits replacement rate: 30.2%
- Housing insecurity: 35.8%
- Food scarcity: 11.5%
- New Mexico
- Poverty rate: 17.6%
- Unemployment rate, 2024: 3.9%
- Two-year change in unemployment: -1.7%
- Unemployment benefits replacement rate: 41.3%
- Housing insecurity: 57.6%
- Food scarcity: 9.3%
- Florida
- Poverty rate: 12.7%
- Unemployment rate, 2024: 3.1%
- Two-year change in unemployment: -0.2%
- Unemployment benefits replacement rate: 26.4%
- Housing insecurity: 36.1%
- Food scarcity: 11.3%
- Alabama
- Poverty rate: 16.2%
- Unemployment rate, 2024: 3.0%
- Two-year change in unemployment: 0.0%
- Unemployment benefits replacement rate: 29.8%
- Housing insecurity: 26.7%
- Food scarcity: 12.0%
10 places where residents are most financially sound
- Hawaii
- Poverty rate: 10.2%
- Unemployment rate, 2024: 3.1%
- Two-year change in unemployment: -1.1%
- Unemployment benefits replacement rate: 49.3%
- Housing insecurity: 22.3%
- Food scarcity: 5.7%
- North Dakota
- Poverty rate: 11.5%
- Unemployment rate, 2024: 2.0%
- Two-year change in unemployment: -0.9%
- Unemployment benefits replacement rate: 48.0%
- Housing insecurity: 16.7%
- Food scarcity: 7.6%
- Maine
- Poverty rate: 10.8%
- Unemployment rate, 2024: 3.4%
- Two-year change in unemployment: -0.6%
- Unemployment benefits replacement rate: 45.9%
- Housing insecurity: 17.2%
- Food scarcity: 7.6%
- Iowa
- Poverty rate: 11.0%
- Unemployment rate, 2024: 3.0%
- Two-year change in unemployment: -0.5%
- Unemployment benefits replacement rate: 45.7%
- Housing insecurity: 19.1%
- Food scarcity: 8.7%
- Vermont
- Poverty rate: 10.4%
- Unemployment rate, 2024: 2.3%
- Two-year change in unemployment: -0.6%
- Unemployment benefits replacement rate: 47.6%
- Housing insecurity: 32.4%
- Food scarcity: 8.1%
- Utah
- Poverty rate: 8.2%
- Unemployment rate, 2024: 2.8%
- Two-year change in unemployment: 0.7%
- Unemployment benefits replacement rate: 43.9%
- Housing insecurity: 14.1%
- Food scarcity: 10.9%
- Massachusetts
- Poverty rate: 10.4%
- Unemployment rate, 2024: 2.9%
- Two-year change in unemployment: -1.8%
- Unemployment benefits replacement rate: 43.3%
- Housing insecurity: 28.9%
- Food scarcity: 8.4%
- Minnesota
- Poverty rate: 9.6%
- Unemployment rate, 2024: 2.7%
- Two-year change in unemployment: 0.0%
- Unemployment benefits replacement rate: 44.5%
- Housing insecurity: 23.7%
- Food scarcity: 9.2%
- Colorado
- Poverty rate: 9.4%
- Unemployment rate, 2024: 3.5%
- Two-year change in unemployment: -0.5%
- Unemployment benefits replacement rate: 42.8%
- Housing insecurity: 21.9%
- Food scarcity: 8.4%
- Delaware
- Poverty rate: 9.4%
- Unemployment rate, 2024: 4.0%
- Two-year change in unemployment: -0.6%
- Unemployment benefits replacement rate: 42.2%
- Housing insecurity: 21.1%
- Food scarcity: 8.2%
Data and Methodology
To find the states where residents are financially hurting most, SmartAsset analyzed six metrics for U.S. states.
- Poverty rate. This is the percentage of residents living below the poverty line. Data comes from the U.S. Census Bureau’s 2022 1-year American Community Survey.
- Unemployment rate. Data is for February 2024 and comes from the Bureau of Labor Statistics’ Local Area Unemployment Statistics.
- Two-year change in unemployment rate. This is the two-year percentage point difference between the February 2024 unemployment rate and February 2022 unemployment rate. Data comes from the Bureau of Labor Statistics’ Local Area Unemployment Statistics.
- Unemployment benefit replacement rate. This is the ratio of the average unemployment benefit received to the average worker’s weekly salary. Data comes from the U.S. Department of Labor and is annual for 2023.
- Percentage of adults experiencing recent housing insecurity. This is the percentage of households not current on rent or mortgage where eviction or foreclosure in the next two months is either very likely or somewhat likely. Data comes from the Census Bureau’s Household Pulse Survey. Respondents were surveyed from March 5, 2024 through April 1, 2024.
- Percentage of adults experiencing recent food insufficiency. This is the percentage of adults in households where there was either sometimes or often not enough to eat in the last seven days. Data comes from the Census Bureau’s Household Pulse Survey. Respondents were surveyed from March 5, 2024 through April 1, 2024.
The following metrics were half-weighted: unemployment rate and two-year change in the unemployment rate.
This story was produced by SmartAsset and reviewed and distributed by Stacker Media.
Where U.S. residents are experiencing the most financial instability
