Lawmakers plan October hearing on alleged $1.8 million theft by former state employee

South Dakota's Capitol in Pierre. (Makenzie Huber/South Dakota Searchlight)

South Dakota lawmakers will hold a hearing in October on a former state employee’s alleged theft of $1.8 million from Child Protection Services.

The Legislature’s Government Operations and Audit Committee met Wednesday in Pierre and discussed plans for the hearing.

“We find out what went on, and how do we stop it,” said Committee Chair and Rep. Ernie Otten, R-Tea.

The committee will call witnesses from various state departments to understand how the theft occurred, with a goal of preventing similar incidents in the future.

A Hughes County grand jury indicted Lonna Carroll, 68, on July 15 for two felony counts of aggravated grand theft. Carroll, a former Department of Social Services employee, allegedly diverted funds intended for foster care and child protective services from 2010 to 2023. She was arrested in Iowa and extradited to South Dakota. Bail is set at $50,000.

During the committee meeting, several members pressed Auditor General Russ Olson for more detailed information regarding the theft. Olson had been tasked with sharing recent audit findings with the committee. He declined to provide additional specifics, citing the ongoing criminal case.

Carroll’s initial court appearance was Thursday. Her arraignment is scheduled for Aug. 27.

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