Another South Dakota government agency is being investigated by the DCI. Which one?

State investigators are looking into a third possible crime that took place within a South Dakota government agency.

South Dakota Attorney General Marty Jackley confirmed in a Friday press release the state Division of Criminal Investigation is investigating a "criminal matter" in the Department of Revenue.

The Attorney General's Office did not explain the circumstances of the alleged incident when reached by the Argus Leader.

The Dakota Scout reported Friday that Lynne Hunsley, a revenue supervisor in the department, was placed on administrative leave for allegedly falsifying vehicle titles.

In a statement to the Argus Leader, DOR Deputy Director of Communications Bobi Adams wrote that the department uncovered "an act of suspicious activity by an employee" after implementing new oversight policies and controls.

"That employee has been terminated," Adams wrote. "The situation has been referred to [DCI] and the Department of Legislative Audit."

This comes after DCI inquired into Sandra O'Day, a former Revenue employee who abused her position to create 13 fake vehicle titles between 2016 and 2023 to secure $400,000 in loans. O'Day, a three-decade employee, died earlier this year from cancer.

According to Open SD, Hunsley's annual wage is listed at $71,546.46 as of Friday. O'Day's final annual wage was listed at $66,739.89.

"The criminal matter was reported by the Department of Revenue and is separate from the previous fraudulent title investigation," Jackley wrote in a press release. "As with any other criminal investigation, updates on this investigation will be provided to the extent permitted under South Dakota law."

Eric Ollila, the executive director of the South Dakota State Employees Organization, pinned the "root cause of these embezzlements" on a lack of hiring within state government. He said this puts pressure on current employees, who have to handle larger workloads and may be encouraged to cut corners.

This also allows bad actors to sense and exploit weakness in their departments, Ollila said.

"If you're having employees approving their own paperwork or their own expenses because you can't add any more employees because the legislature won't let you, I think that's where you see that compaction in enabling embezzling," Ollila said. " The state is short-changing its departments and making people do extra work, and it just cuts out the checks and balances within the system."

This is now the third investigation tied to a South Dakota government employee to be publicly revealed by the Attorney General's Office since July.

Jackley first announced an indictment against Lonna Carroll, a 68-year-old Iowa woman who allegedly stole $1.78 million dollars in state and federal funds from Child Protection Services, a division of the South Dakota Department of Social Services.

Findings from a state investigation allege that Carroll abused her position by requesting funds from CPS and then approving her own requests. She then allegedly intercepted approved checks meant to be used for a specific child.

Carroll allegedly made more than 500 illicit requests between Jan. 1, 2010 and March 24, 2023, and the embezzlement was discovered by DSS in February of this year.

Carroll's case will go to trial in Pierre Dec. 4, the South Dakota Attorney General's Office indicated in a press release. Carroll once worked as a project assistant for DSS.

Carroll's charges are two felony counts of aggravated grand theft.

This article originally appeared on Sioux Falls Argus Leader: Another South Dakota government agency is being investigated by the DCI. Which one?