SD Dept. of Revenue employee fired amid DCI investigation

SIOUX FALLS, S.D. (KELO) – There’s another investigation underway at the South Dakota Department of Revenue, a state employee has been fired and the chair of a legislative committee intends to have the panel look into the situation.

According to a statement from Attorney General Marty Jackley, the Division of Criminal Investigation is “investigating a state Department of Revenue criminal matter.”

According to the statement, the “criminal matter” was reported by the Department of Revenue and is separate from a previous title fraud investigation. Earlier this month , an investigation by the DCI found former state employee Sandra O’Day, now deceased, forged 13 vehicle titles between 2016 and 2023 resulting in $400,000 worth of loans.

In a statement to KELOLAND News, a Department of Revenue spokesperson said the latest situation has been turned over to the DCI and Department of Legislative Audit.

“As part of an ongoing review, the Department of Revenue implemented new policies and internal controls to protect taxpayer dollars. These new processes uncovered an act of suspicious activity by an employee. That employee has been terminated,” Bobi Adams, Deputy Director of Administrations, Strategy and Communications with the DOR, told KELOLAND News in a statement.

“The new 605Drive motor vehicle system, which was proposed by the Governor and passed into law by the legislature, will further enhance protections for taxpayer dollars, and the Governor also proposed — with the legislature’s support — significant investments to create the BISON system, which will also improve safeguards in the State’s accounting,” Adams said.

This latest investigation is the third this summer involving state employees. Jackley announced a former Department of Social Services employee stole more than $1.7 million. Earlier this week, Lonna Carroll, 68, pled not guilty in Hughes County Circuit Court on two criminal charges of stealing more than $1.7 million in state and federal funds from the state Division of Child Protection Services in the South Dakota Department of Social Services.

“As with any other criminal investigation, updates on this investigation will be provided to the extent permitted under South Dakota law,” Jackley said in a news release.

Republican Rep. Ernie Otten chairs the Legislature’s Government Oversight and Audit Committee . The panel had already decided to spend a day in October looking deeper into the DSS matter and discussing possible steps that might prevent a similar situation in the future. Now the committee will also talk at its next meeting on September 5 about adding the alleged titling fraud.

“I plan on taking it up when we look at DSS,” Otten told KELOLAND News on Friday.

This is a developing story.

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