Lawmakers to look into missing money & fraud cases discovered in Pierre

PIERRE, S.D. (KELO) — This week, South Dakota Attorney General Marty Jackley revealed an investigation into a longtime employee of the Department of Revenue who died earlier this year. Jackley says she created phony titles for campers and used them to bilk banks and credit unions out of hundreds of thousands of dollars in loans over eight years.

“There is a way for the Department of Revenue to adjust VIN numbers; she was in a supervisory capacity, which allowed her to do that.”

This comes weeks after the Attorney General filed charges of aggravated grand theft against 68 year old Lonna Carol, a former employee of the State Department of Social Services. She is accused of stealing almost 1.8 million dollars over 13 years.

“It’s an opportunity for the governor’s office to take a look at the systems that were put in place. This goes back to 2011. To take a look at what protections are there and what oversight is needed,” said Jackley.

Jackley says it’s also a chance for the legislature to do the same type of thing.

“It’s shocking that we’ve uncovered two within, you know, a one or two-month period,” said State Representative Linda Duba.

Duba, who sits on the South Dakota Legislature’s Government Operations and Audit Committee, often referred to as GOAC, agrees, saying the lawmakers need to conduct what she calls “a deep dive investigation.”

“Which will mean calling in individuals from those departments, probably working with the Attorney General’s Office and their discovery and investigation and seeing where the breaks were,” said Duba. “This is not a matter of a quote-unquote legislation; this is a matter of a rewrite of what we are doing about our policies and procedures.”

Duba, who worked in banking, says many of the state’s policies and processes are antiquated and lack proper checks and balances. The GOAC is scheduled to take up the issue of oversight at its October meeting. Duba feels the fact that both of these cases of alleged fraud went on for so long is a sign that more audits are needed.

For the latest news, weather, sports, and streaming video, head to KELOLAND.com.