Lawmaker: ‘Deep dive’ audit needed in state fraud

SIOUX FALLS, S.D. (KELO) — The South Dakota Attorney General’s office has confirmed that DCI agents are looking into a state Department of Revenue criminal matter apparently involving fraudulent vehicle titles.In a statement, Marty Jackley said, “The criminal matter was reported by the Department of Revenue and is separate from the previous fraudulent title investigation. As with any other criminal investigation, updates on this investigation will be provided to the extent permitted under South Dakota law.”

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On August 16, we told you about a longtime employee of the Department of Revenue who died earlier this year. Jackley says she created phony titles for campers and used them to bilk banks and credit unions out of around $400,000 in loans over eight years.

We don’t know the details of the most recent accusations; however, the Department of Revenue sent us a statement that reads in part.

“As part of an ongoing review, the Department of Revenue implemented new policies and internal controls to protect taxpayer dollars. These new processes uncovered an act of suspicious activity by an employee. That employee has been terminated.”

UPDATE: Employee fired amid DCI investigation

The Department of Revenue is also adopting a new system to handle vehicle titles, they say it will be more secure. Representative Linda Duba, who sits on the Legislature’s Government Operations and Audit Committee, says the committee will look at options during its October meeting.

“My sense is, do we need to call in a regional auditor to really do a deep dive into all of our processes?” said Duba.

Duba, who worked in banking, feels the three recent cases of embezzlement and fraud may just be the tip of the iceberg. “The taxpayer needs to be assured that we are being good stewards with their money and we are doing deep dives into these situations. Yes, I think we’ll probably find more,” said Duba.The Department of Revenue has a new title program called the “605 Drive” motor vehicle system. It is scheduled to launch in February.