Legislators to investigate 2 SD state departments for theft

PIERRE, S.D. (KELO) — A panel of lawmakers will spend three days later this year investigating what’s gone wrong in two departments of the South Dakota state government, where former employees allegedly engaged in financial deceptions.

The Legislature’s Government Operations and Audit Committee will spend part of October 21 looking into the state Department of Revenue, where two former employees reportedly created fictitious ownership titles for vehicles. The fake titles were used to receive bank loans.

“We’ll be able to dive into what went on there,” Republican Rep. Ernie Otten , who chairs the committee, said Thursday as the members discussed scheduling the additional meetings.

The panel also intends to consider on October 21 whether there is a need to bring in an outside organization to do deeper financial audits throughout state government.

Committee members then plan to meet again on December 11-12 regarding alleged thefts from the state Department of Social Services child-protection division. A now-retired employee has been criminally charged for stealing nearly $1.8 million over the span of 13 years.

The former employee, Lonna Carroll, 68, is scheduled for a three-day trial starting December 4. She has pleaded not-guilty to two felonies.

The trial “should clear up a lot of the stuff for us,” Otten said.

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