Prosecutors: GEAR up Defendant Misused Nonprofit's Money

SIOUX FALLS, S.D. (AP) — The state Attorney General's office says a man facing felony charges from South Dakota's GEAR UP scandal spent thousands of dollars meant to help Native American youth on meals, electronics and other personal expenses.

Prosecutors said Monday they intend to introduce evidence that Stacy Phelps misused funds from the non-profit American Indian Institute for Innovation, including nearly $60,000 at Wal-Mart over several years.

Three people, including Phelps, have pleaded not guilty to charges from a financial investigation into the GEAR UP college-readiness program.

Authorities accuse Phelps, who was the institute's chief executive, of helping a couple who had been embezzling attempt to avoid a potential audit by backdating contracts.

Prosecutors say the evidence explains Phelps' motive in the alleged crimes. Phelps' attorney didn't answer a telephone call for comment.