EMERY, S.D. — An Emery woman is facing serious legal consequences after being indicted for allegedly stealing from her employer, a Sioux Falls-based construction company.
Paula Dockendorf, 45, was indicted on one count of grand theft, a Class 3 felony, for allegedly taking more than $100,000 but less than $500,000 from Hegg Construction, according to Lincoln County court records. The indictment was handed down by a grand jury on October 8, 2025.
“The theft reportedly occurred between Dec. 1, 2023, and Nov. 1, 2024,” the indictment states, though the exact amount allegedly stolen has not been publicly disclosed.
Dockendorf, a licensed Certified Public Accountant in South Dakota, is scheduled for arraignment on Monday, October 27. If convicted, she could face up to 15 years in prison.
The investigation was led by the South Dakota Division of Criminal Investigation, with assistance from the Sioux Falls Police Department, and the case will be prosecuted by the state Attorney General’s office. Dockendorf is presumed innocent until proven guilty.
“She faces serious consequences under state law, but the judicial process will determine the outcome,” a spokesperson for the Attorney General’s office said.
This indictment comes one month after Dockendorf pleaded guilty in Davison County to a Class 6 felony for possession of a controlled substance. A separate Class 4 felony charge was dismissed, and she received a suspended sentence, a $650 fine, and probation through the end of 2025.
Hegg Construction has not released a statement about the alleged theft, but sources say the company is cooperating fully with investigators to recover lost funds and ensure stronger internal controls.
“Cases like this underscore the importance of thorough oversight and auditing procedures in corporate finance,” said a local legal expert.
Authorities say the alleged theft involved financial transactions over an extended period, highlighting the role of employee trust and internal monitoring in preventing major losses.
The community remains attentive to the case, which has drawn attention due to the amount of money involved and Dockendorf’s professional background as a CPA.
“It’s a stark reminder that anyone in a position of financial responsibility must adhere to ethical standards,” the expert added.
The arraignment on October 27 will mark the next step in a case that could have significant legal and financial repercussions for both Dockendorf and Hegg Construction. Investigators continue to review company records and any other transactions linked to the alleged theft.
Originally reported by Jennifer leither in Mitchell Republic.
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