PIERRE, S.D. (KELO) — Prosecutors revealed at trial Wednesday that Lonna Carroll during a July 17, 2024, interview admitted to South Dakota criminal investigators she stole from the state Division of Child Protection Services and that Carroll signed a document summarizing thefts totaling $1,777,665.73 during a 13-year period.

NWS to watch weather with less staff, official says

The interview took place at Carroll’s house in Algona, Iowa. A South Dakota grand jury had previously issued an indictment and there was a warrant for her arrest. She was taken to the Kossuth County jail and later was turned over to South Dakota authorities.

South Dakota Division of Criminal Investigation agent Trevor Swanson and supervisory special agent Matt Glenn went to Carroll’s house with an Iowa DCI agent and conducted the interview. Carroll didn’t know they were coming. Swanson said the document that Carroll and he signed was prepared by the South Dakota Department of Legislative Audit.

Carroll, 68, moved from Pierre to Algona, Iowa, where her son and his family live, after she retired in March 2023 from the South Dakota Department of Social Services, where she worked as a program assistant for Child Protection Services.

Carroll has pleaded not-guilty to two counts of grand theft. She has a court-appointed defense attorney and remains in Hughes County jail because she’s been unable to post $50,000 bond. Her trial, scheduled for four days, began Tuesday and continues Thursday.

Prosecutors played a digital recording of the full interview for jurors on Wednesday and provided them copies of a transcript that they could read while hearing the recording. The transcript copies were collected immediately afterward.

A Hughes County grand jury had already issued an indictment and a warrant was out for Carroll’s arrest when the two DCI agents went to Algona.

“By signing it,” Swanson testified about the document, “I had her attest to its accuracy.” Under cross-examination, Swanson acknowledged, “I knew there was a very high likelihood she would be placed under arrest.”

Carroll is accused of falsifying requests for things that children supposedly needed, authorizing those requests, filing them for payment and authorizing payment. Then she would take checks issued from state auditor to American Bank & Trust in Pierre, deposit the checks in the children’s accounts, and immediately withdraw cash in the same amounts, using the money mostly for herself.

During the interview, Carroll initially gave various versions of how money was distributed from what the division refers to as “OWN Accounts” that are set up for some children who are in the department’s care. Swanson asked Carroll early in the interview, “Have you ever withdrawn cash from those accounts?” Carroll replied, “Unh-unh,” meaning no.

Swanson then asked whether she ever withdrew cash from children’s accounts at American Bank & Trust. “Well,” she answered, “I withdrew cash to get stamps for letters.” She added, “I only took out four hundred (dollars) and that was years ago.”

Soon, Carroll told Swanson that she sometimes took out cash that would go to the children’s parents or legal guardians.

Swanson told Carroll that he uses what he described as “honesty checkpoints” to see whether people were telling the truth when he interviewed them. He asked whether she had withdrawn money many times and she nodded yes.

“I think you made a mistake at some point and it spiraled out of control,” Swanson said to her.

“Yes,” Carroll replied.

He suggested that she had withdrawn money many times. “Mm-hmm,” she answered, signaling agreement.

At that point Swanson produced the summary that Legislative Audit had prepared for him. It listed names of children’s accounts, dates, amounts and her name next to each transaction.

“This is all of it?” Swanson asked.

“Mm-hmm,” Carroll answered.

“I see you’re nodding your head yes,” Swanson said.

He asked her, “What was the money for?”

“Just to live,” she said. She added, “Like food and rent.”

Carroll then said to Swanson, “I want to tell you something though…Both my parents passed.” She had inherited money. “And that’s how I bought the house.”

Her son and his family had previously lived in the house. She bought it from them when they moved to a larger house.

Swanson steered the interview back to the transactions. “Did it get just out of control?”

“Yes,” Carroll said.

“Was there ever a time ‘I can’t stop?'”

“Yes.”

There were still some questions Swanson wanted answered.

“Where is the rest of it?” he asked.

“Nowhere,” she said.

“It’s gone?”

“Yes.”

She added, “I never did anything like this before.”

Her son and daughter-in-law were at the house. The daughter-in-law asked if Carroll needed a lawyer.

Swanson next asked Carroll to sign the Legislative Audit summary. He placed an X on the document and signed it with a date. Then she signed it.

“Thank you for that. I appreciate that,” Swanson said.

It was then that Swanson told Carroll that an indictment had been issued and there was a warrant for Carroll’s arrest.

After more talk about whether Carroll needed a lawyer, Swanson asked her, “Did anybody make you take that money?”

“No,” Carroll said.

She was then placed under arrest and taken to a waiting Algona police car.

In the courtroom on Wednesday, South Dakota Attorney General Marty Jackley conducted the direct questioning of Swanson. Jackley asked who Carroll’s statement of sorry was intended for.

“She was directing that comment at me,” Swanson said. “She was apologizing for her actions.”