The Latest: Defence: Maintained Phelps’ innocence, proved it

SIOUX FALLS, S.D. – The Latest on the South Dakota trial of an ex-non-profit executive accused of backdating contracts to try to avoid a potential audit (all times local):

11:15 p.m.

An attorney for a former South Dakota non-profit executive cleared of backdating contracts to try to avoid a potential audit says the defence always maintained his innocence and proved it.

Stacy Phelps was found not guilty late Thursday night of falsifying evidence and conspiring to offer forged or fraudulent evidence. Defence attorney Dana Hanna says Native American people in South Dakota have always known Phelps, a member of the Sisseton Wahpeton Oyate, was innocent of the charges and have been behind him “all the way.”

Prosecutors alleged Phelps backdated the contracts between the non-profit and an educational co-operative to avoid an audit. A jury cleared him after about nine hours of deliberation.

Attorney General Marty Jackley says he appreciates the jury’s service and respects the verdict.

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10:35 p.m.

A South Dakota jury has cleared a former non-profit executive accused of backdating contracts to try to avoid a potential audit.

Stacy Phelps was found not guilty late Thursday night of backdating the contracts between the non-profit and an educational co-operative. Defence attorney Dana Hanna said during trial the evidence showed Phelps didn’t commit any crimes.

Attorney General Marty Jackley argued the case was about a “coverup” of the non-profit’s financial dealings.

Phelps was the second and final person to face trial in a sprawling case known as Gear Up. The first hint of major issues came after the non-profit’s chief financial officer, Scott Westerhuis, shot his wife, his four children and then himself in 2015.

The deaths spurred a financial investigation that led to charges against Phelps and two others.

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3:25 p.m.

A South Dakota jury is weighing the case of a former non-profit executive accused of backdating contracts to try to avoid a potential audit.

The Argus Leader reports that closing arguments were Thursday in the trial of Stacy Phelps. Prosecutors highlighted discrepancies in Phelps’ testimony, trying to convince jurors he had a motive for wanting to avoid an audit of the non-profit he headed.

But defence attorney Dana Hanna deflected blame from Phelps, saying he got played by the non-profit’s chief financial officer, Scott Westerhuis. Westerhuis was embezzling money before he killed his family and then himself in September 2015.

Phelps is the second and final person to face trial in a sprawling case known as Gear Up. The deaths spurred a financial investigation that led to charges against Phelps and two others in 2016.