The Hughes County Courthouse in Pierre, pictured in November 2022. (John Hult/South Dakota Searchlight)
PIERRE, S.D. (South Dakota Searchlight) – Another former South Dakota state employee has been sentenced for a crime committed while working for state government.
Danielle Degenstein, 52, of Pierre, pleaded guilty Tuesday in Hughes County Circuit Court. A news release from state Attorney General Marty Jackley said she was sentenced to a year of probation and a $500 fine, plus an amount of court costs that was not disclosed in the release. She’ll avoid spending one year in jail if she abides by the conditions of the sentence.
Degenstein’s crime was misprision of a felony, which means she failed to report her knowledge of another person’s criminal activity.
The chain of events that led to Degenstein’s criminal charge started in August, when state Attorney General Marty Jackley said a deceased former three-decade employee of the state Department of Revenue, Sandra O’Day, had allegedly created 13 fake vehicle titles to help her secure $400,000 in loans. No charges were filed, because O’Day died before her alleged behavior came to light.
In October, Jackley announced charges against two other former Department of Revenue employees, Lynne Hunsley, 64, and Degenstein, both of Pierre.
Hunsley has since pleaded guilty to forgery and grand theft by deception for creating a fake vehicle title that she used as proof of a trade-in to help her avoid excise taxes. She was sentenced to three years of probation and ordered to pay a $1,000 fine and $1,200 in restitution to the state.
Court documents said Degenstein concealed her knowledge of a crime committed by a person identified as “S.O.” — initials that match O’Day’s. A news release Wednesday from Jackley said Degenstein was investigated for knowing, and not reporting, that a Department of Revenue employee forged a power of attorney document for that employee’s financial gain.
The Degenstein case is among five criminal prosecutions that Jackley has filed against former state employees since last year for allegations related to their work with state government.
One former employee, Lonna Carroll, used her position at the Department of Social Services to steal nearly $1.8 million over the course of 13 years. A jury found Carroll guilty of grand theft, and she’s scheduled to be sentenced in July. Other criminal allegations against former state employees included falsifying food service inspections and the personal use of foster family food vouchers.
In response to the run of prosecutions, Jackley supported a package of four bills passed during the recent legislative session that will expand the investigatory authority of the state auditor, strengthen the Board of Internal Controls, institute mandatory reporting requirements for state employees and penalties for failing to report, and establish protections for whistleblowers.
Last month, Gov. Larry Rhoden signed an executive order mandating the creation of a “secure standard reporting mechanism” for employees. The portal will deliver whistleblower reports of malfeasance to the state’s auditor and attorney general.
Lawmakers also passed legislation this year strengthening the ability of the Legislature’s Government Operations and Audit Committee to conduct investigations and issue orders known as subpoenas requiring people to testify or supply information.
Last year, then-Gov. Kristi Noem added an extra internal control officer position to the executive branch and ordered state employees to undergo annual training aimed at preventing criminal activity.
Comments