By: John Hult – August 15, 2024 2:42 pm
PIERRE, S.D. (South Dakota Searchlight) – A now-deceased state employee used her position with the state Department of Revenue to create 13 fake vehicle titles, which were used to secure $400,000 in loans, Attorney General Marty Jackley’s office confirmed Thursday.
The Dakota Scout newspaper had previously reported that a woman named Sandra O’Day, a three-decade state employee, had engaged in the behavior prior to her death from cancer.
Jackley’s release does not name O’Day, but says the Division of Criminal Investigation led an inquiry into the behavior of a former state employee and uncovered evidence of the fake titling scheme.
Jackley’s spokesman, Tony Mangan, confirmed that the release was about O’Day.
“Since the former employee has passed away, no charges will be filed,” said a statement from Jackley.
The statement did not elaborate on the impacts to the financial institutions from which O’Day obtained the loans. It said only that about $400,000 in loans were obtained. It’s unclear if O’Day been making payments on the loans.
Mangan directed some questions to the state Department of Revenue. Department spokeswoman Kendra Baucom, citing confidentiality laws pertaining to motor vehicle records, did not answer questions about lender losses and any potential liability the state might have, if any, for those losses.
The confirmation of the O’Day investigation from Jackley’s office comes in the wake of a separate fraudulent scheme allegedly carried out by another former state employee, in that case one who’d worked for the Department of Social Services. Lonna Carroll, 68, is accused of pocketing $1.78 million from Child Protection Services by requesting and approving foster care and child protections payments before pocketing the money for herself.
Carroll faces two counts of aggravated grand theft, based on more than 500 transactions over a 13-year period.
During a July 31 meeting, lawmakers on the state’s Government Operations and Audit Committee grilled Auditor General Russ Olson on the protocols that may have helped Carroll perpetuate the alleged thefts, but Olson largely declined to offer details in light of the pending criminal case.
The audit committee is set to meet again in October to dive further into the details of the departmental protocols Olson said have changed since Carroll’s departure. One employee can no longer request and approve payments, Olson said.
The chair and vice chair of the audit committee did not return calls seeking comment on the O’Day situation. Committee member and Sioux Falls Democratic Sen. Reynold Nesiba said via text that the committee “will take it up” once Jackley’s office has finished its inquiry.
Mangan confirmed via email that the investigative work on the case has concluded.
Another committee member, Sen. Tim Reed, R-Brookings, said he suspects the committee will need to take a look at the role of the Revenue Department’s internal controls. As of Thursday afternoon, however, Reed hadn’t spoken to many other committee members about the titling scheme.
“I don’t know when we’ll take that on. I would guess we would,” Reed said.
As for the situation with Carroll, Reed hopes the committee will stay in open session to discuss more of the details on internal controls at the Department of Social Services.
“We’re very committed to not going into an executive session for it,” said Reed, using a term for a closed-door session. “You never know, because they’re talking about a legal case, but we’re really going to try to do everything out in the open.”
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