SIOUX FALLS S.D. (KELO) — Two more state employees have been indicted on fraud-related charges involving the South Dakota Department of Revenue.
South Dakota Attorney General Marty Jackley made the announcement Wednesday that Lynne Hunsley, 63, and Danielle Degenstein, 51, were each indicted on Oct. 1 by a Hughes County Grand Jury. Hunsley was indicted on seven counts, five felonies and two misdemeanors.
Hunsley is accused of using her position with the Division of Motor Vehicles to falsify records between Jan. 1, 2021, and June 30, 2023.
Degenstein was indicted on one misdemeanor, a Misprision of a Felony, a Class 1 Misdemeanor, where she is accused of concealing her knowledge of a felony to authorities related to the acts of former state employee Sandra O’Day.
O’Day, who has died, forged 13 vehicle titles between 2016 and 2023, resulting in $400,000 worth of loans. Degenstein was the authorized notary during the creation of the fraudulent titles and was aware, according to Jackley. The charge carries a maximum sentence of one year in custody and a $2,000 fine.
“My job is to step in when the bank is robbed, it’s time to take steps to ensure the bank isn’t robbed,” Jackley said at a news conference.
Earlier this year, Jackley announced a former Department of Social Services employee stole more than $1.7 million. Lonna Carroll has pled not guilty in Hughes County Circuit Court.
Jackley also said he believes there needs to be whistleblower laws on the books for state employees to report when fraudulent activity happens.
KELOLAND News is going through the court documents and will have more coverage on air and online.
This is a developing story.
