DECEMBER 30, 2024:
A 64 year old woman from Pierre will be on probation for three years after pleading guilty to Forgery and Grand Theft by Deception charges connected to fraud committed while she was an employee of the state of South Dakota.
Lynne Hunsley was accused of using her position with the Department of Revenue’s Division of Motor Vehicles to falsify records over a 2.5 year time period (between Jan. 1, 2021 and June 30, 2023). That action resulted in her not having to pay $1200 in tax liabilities to the state. She plead guilty during an appearance Monday afternoon (Dec. 30, 2024) in Hughes County Circuit Court in Pierre.
The judge suspended a three year prison term on the Forgery charge and a one year prison term on the Grand Theft by Deception charge, providing Hunsley successfully completes the three year probation period. Hunsley must also pay a combined fine of $1000, $233 in court costs and $1200 in restitution.
In a related case, Danielle Degenstein (deegan-stine), also of Pierre, was charged with Misprison of a Felony, meaning she knew a felony crime was happening, but didn’t report it to authorities (a misdemeanor that carries a maximum sentence of one year in custody, a $2,000 fine or both). This case is still pending and she is presumed innocent under the U.S. Constitution.
In 2024, a total of five former state government employees have been charged with crimes related to their work.
Earlier this month (Dec. 17, 2024), 55 year old Renee Strong of Springfield was charged with forging and falsifying food service inspection reports while performing inspections for the Department of Health through a contract with the Department of Public Safety. She’s charged with 13 Class 6 felony counts of Offering False or Forged Instruments for Filing or Recording in a Public Office and 13 Class 5 felony counts of Forgery. Each Class 6 felony carries a maximum sentence of two years in prison, a $4,000 fine or both. Each Class 5 felony has a maximum sentence of five years in prison, a $10,000 fine or both.
In August (Aug. 16, 2024), Attorney General Marty Jackley announced there would be no charges filed against Sandra O’Day of Pierre, who is now deceased. The former state Revenue Department employee was accused of making fraudulent transactions that were used to secure almost $400,000 worth of loans at banks between 2016 and 2023.
In July (July 17, 2024), 68 year old Lonna Carroll was charged with two felony counts of Aggravated Grand Theft. She’s accused of stealing an estimated $1.8 million in state and federal funds from the Child Protection Services program, while working as a state employee between 2010 and 2023.
Jackley intends to introduce legislation during the 2025 legislative session that would “enhance accountability, improve transparency and better protect South Dakota taxpayers.”
OCTOBER 9, 2024:
Two women from Pierre have been indicted on fraud-related charges connected to crimes committed while they were both employees of the South Dakota Department of Revenue.
The indictments against 63 year old Lynne Hunsley and 51 year old Danielle Degenstein were announced Wednesday (Oct. 9, 2024).
Hunsley and Degenstein are the third and fourth former State of South Dakota employees to be accused of mishandling taxpayer dollars this year (2024). However, Attorney General Marty Jackley says these cases are the exception, not the rule.
Jackley says Hunsley is accused of using her position with the Division of Motor Vehicles to falsify records between Jan. 1, 2021 and June 30, 2023. She was indicted on seven counts, five felonies and two misdemeanors.
Hunsley’s charges and maximum sentence for each are:
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Count 1 Forgery, Class 5 Felony: five years in prison and a fine of $10,000.
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Count 2 Altering or Forging Certificate of Title, Class 5 Felony: five years in prison and a fine of $10,000.
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Count 3 Making False Statement in Application for Certificate of Title, Class 5 Felony: five years in prison and a fine of $10,000.
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Counts 4A and 4B Grand Theft by Deception, Class 6 Felony: two years in prison and a fine of $4,000.
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Count 5 Offering False or Forged Instrument for Filing, Class 6 Felony: two years in prison and a fine of $4,000.
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Count 6 Falsification of Public Records by Public Officer or Employee, Class 1 Misdemeanor: one year in county jail and $2,000 fine.
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Count 7 Failure to Pay Excise Tax, Class 1 Misdemeanor: one year in county jail and $2,000 fine
Jackley says Degenstein is charged with one misdemeanor, Misprison of a Felony, which carries a maximum sentence of one year in custody and a $2,000 fine.
Hunsley and Degenstein were indicted Oct. 1, 2024, by a Hughes County Grand Jury. They are presumed innocent under the U.S. Constitution.
In August (Aug. 16, 2024), Jackley announced there would be no charges filed against Sandra O’Day, also of Pierre, who is now deceased. The former state Revenue Department employee was accused of making fraudulent transactions that were used to secure almost $400,000 worth of loans at banks between 2016 and 2023.
In July (July 17, 2024), 68 year old Lonna Carroll was charged with two felony counts of Aggravated Grand Theft. She’s accused of stealing an estimated $1.8 million in state and federal funds from the Child Protection Services program, while working as a state employee between 2010 and 2023.
In all cases, Jackley says the state agency involved and the Governor’s office have fully cooperated.
WRITTEN VERSION:
South Dakota Attorney General Marty Jackley announces two Pierre women have been indicted on fraud-related charges connected to crimes committed while they were both employees of the South Dakota Department of Revenue.
“These charges are alleged violations of the public’s trust,” said Attorney General Jackley. “As Attorney General, I will continue to protect taxpayers and maintain transparency in bringing forth these violations.”
Lynne Hunsley, 63, and Danielle Degenstein, 51, were indicted Oct. 1 by a Hughes County Grand Jury. Hunsley was indicted on seven counts, five felonies and two misdemeanors, and Degenstein was indicted on one misdemeanor.
Hunsley is accused of using her position with the Division of Motor Vehicles to falsify records between Jan. 1, 2021 and June 30, 2023. The charges and maximum sentence for each are:
Count 1 Forgery, Class 5 Felony: five years in prison and a fine of $10,000.
Count 2 Altering or Forging Certificate of Title, Class 5 Felony: five years in prison and a fine of $10,000.
Count 3 Making False Statement in Application for Certificate of Title, Class 5 Felony: five years in prison and a fine of $10,000.
Counts 4A and 4B Grand Theft by Deception, Class 6 Felony: two years in prison and a fine of $4,000.
Count 5 Offering False or Forged Instrument for Filing, Class 6 Felony: two years in prison and a fine of $4,000.
Count 6 Falsification of Public Records by Public Officer or Employee, Class 1 Misdemeanor: one year in county jail and $2,000 fine.
Count 7 Failure to Pay Excise Tax, Class 1 Misdemeanor: one year in county jail and $2,000 fine
Degenstein is accused of a Misprison of a Felony, a Class 1 Misdemeanor, where she concealed her knowledge of a felony to authorities. The charge carries a maximum sentence of one year in custody and a $2,000 fine.
The two defendants have not made their initial court appearance. They are presumed innocent under the U.S. Constitution.
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