02-04-2025
Carroll trial Day 2: DCI explains investigation into $1.7 million
PIERRE, S.D. (KELO) — Prosecutors laid out on Wednesday morning how the state Division of Criminal Investigation and the state Department of Legislative Audit concluded that Lonna Carroll allegedly stole more than $1.7 million from the South Dakota Department of Social Services while she was employed there.
5 witnesses testify as DSS embezzlement trial begins
DCI supervisory special agent Matt Glenn said a search of a Pierre storage unit rented by Carroll was packed with containers of clothes as well as boxes of receipts and personal bank statements that indicated she was 'spending way more than she was making from her state job' as a financial program assistant in the Division of Child Protection that paid $21.09 per hour.
Glenn told the jury that the receipts showed purchases costing hundreds of dollars were paid in round amounts of cash.
Another witness, intelligence analyst April Pontrelli, presented a report looking at Carroll's deposits and spending from 2010 through March 2023 when Carroll retired. Pontrelli said Carroll's deposits substantially increased beyond her annual salary during that period, as did her spending.
A special report prepared by the Department of Legislative Audit covering March 2017 through December 2022 found that Carroll requested more than $930,000 of special purchases for accounts of children who had been in the department's care and then authorized those requests to be paid.
Kelly Mikkelsen testified about the Legislative Audit report. Carroll's defense attorney Timothy Whalen said that was a lot of money rolling through a handful of those children's accounts. He asked Mikkelsen, 'Something that should have raised an eyebrow?' Mikkelsen answered, 'Possibly, yes.'
Whalen then asked whether Child Protection Services director Pam Bennett should have been responsible for catching Carroll's actions. 'Yes,' Mikkelsen said.
Next Whalen asked whether others in the office should have been responsible. 'Everybody's responsible,' Mikkelsen said.
Whalen asked Mikkelsen if he had any personal knowledge that Carroll circumvented policies and procedures. 'Through our special review, I think she did,' Mikkelsen said.
He told Whalen that Carroll shouldn't have had authority to make requests and then approve them.
He added that the person approving requests shouldn't be allowed to deposit the check, as Carroll did.
Prosecutor Nolan Welker then followed up on Mikkelsen's statement that everyone was responsible for following the rules. 'Did that include Lonna Carroll?' Welker asked. 'Yes,' Mikkelsen said.
Carroll's trial resumed Wednesday afternoon and is scheduled to continue through Friday.
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