South Dakota Attorney General Marty Jackley announced the indictment of a former state Department of Social Services employee on Thursday at Sioux Falls’ Police Law Enforcement Center.
Lonna Carroll, 68, of Algona, Iowa, has been charged for allegedly stealing around $1.78 million from the department’s Child Protection Services.
Carroll faces two felony counts of aggravated grand theft, according to indictment records filed in South Dakota’s Sixth Judicial Circuit Court. Jackley stated that the thefts were uncovered by DSS in February 2024.
According to Jackley, the former DSS employee was detained Wednesday in Algona and is currently being extradited to South Dakota.
Carroll’s initial allegation in this instance is a class 2 felony grand theft, which applies when a person is accused of stealing more than $500,000 in property. Court filings show that this happened in Hughes County between July 1, 2013, and March 24, 2023. Jackley told reporters that this case involved approximately 399 transactions in which money was stolen.
The former DSS employee’s second charge is class 3 felony grand theft for more than $100,000 in stolen items. This allegedly took place between January 1, 2010, and June 30, 2013, also in Hughes County. Jackley stated that this charge included an additional 172 transactions in which money was stolen.
Jackley explained that certain DSS personnel can request funds from CPS for foster care and other child service-related expenses.
Typically, when a DSS employee wants funding, their application undergoes “double supervisory review.” When the funding request is approved, it is forwarded to the DSS’ financial staff, who then ask the state auditor for a payment warrant or a bank check in the requested amount, according to Jackley.
Depending on the circumstances, the state treasurer may become involved if a wire transfer or other similar process is required to send the funds to the designated location.
Carroll’s suspected corruption case differs in that she requested CPS monies and appointed herself as the supervisor of her requests, allowing her to accept her requisition.
According to Jackley, after her requests were approved by the state auditor, Carroll allegedly intercepted the monies and carried them directly to a bank. “Then, when the check was deposited in the name of the bank in that particular bank, she immediately withdrew the funds, took the funds, the cash, to a different bank, and placed them in her account,” Jackley told me.
“Citizens expect government agencies and employees to safeguard public funds,” Jackley stated in a press statement. “I appreciate the cooperation of Gov. Noem and the Department of Social Services throughout this investigation.”
Matt Althoff, DSS secretary, told the Argus Leader on Thursday that department officials found Carroll’s “suspicious financial activity” and reported it to DCI.
“DSS utilizes both internal and external audits, reconciliations, and internal controls to safeguard public funds,” Althoff told me. “Additional safeguards have already been implemented, and we continue working to identify further prevention and detection methods.”
Carroll’s first court appearance has not yet been set in Hughes County Circuit Court in Pierre. The maximum sentence for count one is 25 years in jail and a fine of $50,000. The maximum sentence for Count Two is 15 years in jail and a $30,000 fine.
According to spokesperson Tony Mangan, the Attorney General’s Office will prosecute the case.