Lawmakers set hearing dates on state employee theft accusations

(The Center Square) – The South Dakota Government Operations and Audit Committee will hold two hearings on recent alleged theft involving state employees.

The committee decided to wait until after the trial of a woman accused of stealing more than $1.8 million in state and federal funds to discuss the case.

Lonna Carroll, 68, of Algona, Iowa, is accused of taking the funds from the Department of Social Services, where she was employed, over the course of 13 years. She is set to stand trial on Dec. 4, according to South Dakota Attorney Marty Jackley. Carroll pleaded not guilty to two counts of aggravated grand theft.

The committee will discuss the case after the trial in a two-day session that begins on Dec. 11.

Chairman Ernie Otten, R-Tea, said the committee will discuss alleged thefts from the Department of Revenue in a two-day session beginning Oct. 21.

A now-deceased employee allegedly forged 13 vehicle titles to obtain almost $400,000 in fraudulent loans, Jackley said last month. No charges were filed in the case because the employee is deceased, he said.

Rep. Linda Duba, D-Sioux Falls, said the committee should go further than the two incidents.

"My question is, are we not going to discuss the need for deeper audits, outside support, and coming and doing them in all of our departments?" Duba asked.

Otten said it would be discussed during the meeting.