SD State employee suspected of creating fraudulent automobile titles

SIOUX FALLS, S.D. (KELO) — For the second time in a matter of weeks, we have word from law enforcement of a state employee in Pierre suspected of committing fraud for monetary gain. The latest case centers on an employee of the Division of Motor Vehicles.

According to the South Dakota Attorney General’s office, the employee, now identified as Sandra O’Day, is suspected of creating fake car titles and using them to secure almost $400,000 in auto loans. Jackley says she created titles for campers without motors because they are not reported to the national registry.

“Once a false title was created, that title was taken to either a bank or credit union and a loan was taken out to somebody else, with the use of that as collateral. Once the loan was secured and the money, she then went and destroyed the fraudulent title.”

The DCI investigation led to the discovery of 13 forged car titles between 2016 and 2023. Since O’Day has passed away, no charges will be filed. According to Jackley, there is no evidence that anyone else was involved. KELOLAND News asked Jackley if the state could be on the hook to repay the loans to the banks and credit unions.

“There are certainly outstanding balances that exist. Whether the state has exposure with respect to that has yet to be seen. But those loans would not be in the name of the state. They would be in the name of other individuals oftentimes that were unaware of that.”

Because she was in a supervisory position, Jackley says O’Day could adjust VIN numbers, which allowed her to create the titles she would eventually destroy. Because of the statute of limitations, the DCI investigation only goes back to 2016. Jackley believes O’Day may have created even more fake titles as far back as 2011.

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