PIERRE, S.D. (KELO) — The Legislature’s Government Operations and Audit Committee plans to seek answers about how two now-former employees in separate departments of South Dakota state government allegedly enriched themselves through illegal means, according to a top lawmaker who serves on the panel.
House Speaker Hugh Bartels made the comments just hours after South Dakota Attorney General Marty Jackley issued a statement on Thursday morning confirming a second investigation into alleged financial deception, this time within the state Department of Revenue.
Bartels said GOAC members plan to look into both matters, starting in October, and would likely issue a report that lays out what officials believe happened and also recommend corrective actions. “I think that will be a great tool and help the public understand how we move forward with this,” he said.
Those remarks came after the Legislature’s Executive Board returned from a closed-door session Thursday morning. The House speaker and the Senate president pro tempore each appoint five members to GOAC from their legislative chambers. Executive Board members are elected from their chambers and oversee the Legislature’s operation outside of the annual legislative session.
In his statement, Attorney General Jackley said the latest matter involves a past employee of the state Division of Motor Vehicles. He said his office was contacted in February of 2024 about an allegation of a false or fraudulent motor-vehicle title.
The person in question, Sandy O’Day, died of cancer earlier this year. She had been one of the state employees singled out for recognition in 2022 for her then-32 years of service and was described as “an invaluable asset” to the division. Upon her retirement last year, she was honored by the Department of Revenue in a Facebook post. That post has since been deleted. Her husband died in May.
The investigation at the DMV led to the discovery of 13 forged vehicle titles by the former employee between 2016 and 2023, according to Jackley. He said the titles were used to secure almost $400,000 worth of loans.
“There is no evidence that others were involved in this criminal activity. Since the former employee has passed away, no charges will be filed,” Jackley said.
All of the forged titles were associated with various fictitious campers and pull-type trailers, according to a spokesman for the attorney general’s office, Tony Mangan. He said there is not any litigation by lenders pending against state government at this time.
GOAC already had planned to look into the alleged theft of nearly $1.8 million from the state Department of Social Services. The suspect, Lonna Carroll, has been arrested.
