Former head of the American Indian Institute of Innovation, Stacy Phelps, is currently facing charges of falsifying evidence so AIII could avoid being audited.

The State is introducing new evidence to show why Phelps may have been trying to avoid that audit, including tens of thousands of dollars spent on fancy meals and more than $100,000 on personal items. 

Examples of some of the charges: 
– Sam’s Club: $61,242.32
– Walmart: $57,776.97
– Loaf & Jug (fuel): $44,913.49
– Computer Village: $20,377.78
– Best Buy: $20,729.74
– Minerva’s: $7,643.00

Prosecutors also are presenting an email exchange in the case between Phelps and Westerhuis about whether to run various expenses through AIII instead of Mid Central.

Our KELOLAND News investigation spoke with a former GEAR UP worker in May who told us that Phelps was spending grant money on elaborate meals and personal items, and had even taken out storage units for them. 

Angela Kennecke talked with Attorney General Marty Jackley and will have more details tonight on KELOLAND News at 5 and 6.


Charges Filed In GEAR UP Investigation (March 16, 2016)

Investigation Reveals Westerhuises Took Up To $2M As Part Of Conspiracy (March 16, 2016)

Initial Appearance For Three Charged In GEAR UP Investigation (March 22, 2016)

Grand Jury Indicts 3 On GEAR UP-Related Charges (April 14, 2016)

More Charges Expected In GEAR UP Case (April 27, 2016)