2 South Dakota Department of Revenue Employees Charged with Fraud

A pair of former South Dakota Department of Revenue employees have been officially charged with fraud for crimes they allegedly committed while on the job.

Lynne Hunsley, 63, and Danielle Degenstein, 51, both of Pierre, were indicted October 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 at the Division of Motor Vehicles to allegedly falsify records between January 2021 and June 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

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Degenstein is accused of Misprision of a Felony, a Class 1 Misdemeanor, for allegedly concealing her knowledge of a felony to authorities. The charge carries a maximum sentence of one year in custody and a $2,000 fine.

In a press release announcing the indictments, South Dakota Attorney General Marty Jackley said:

'These charges are alleged violations of the public’s trust. As Attorney General, I will continue to protect taxpayers and maintain transparency in bringing forth these violations.'

The two defendants have not made their initial court appearance.