Board accepts Gear Up program coordinator's resignation

A Platte educational cooperative accepted the resignation of its former Gear Up program coordinator Thursday after spending at least part of a three-hour executive session discussing the program it lost in September.

Dan Guericke, director of Mid-Central Educational Cooperative, said the group's board of directors talked about the federal program aimed at helping middle and high school students attend post-secondary education. In South Dakota the program works with Native Americans.

Following the executive session, the board unanimously voted to accept the resignation of former Gear Up administrator Stacy Phelps. In a letter dated Oct. 14, Phelps requested that the board accept his resignation from Mid-Central.

Phelps also resigned his position on the South Dakota Board of Education last month. Gov. Dennis Daugaard at that time said Phelps' continued involvement on the board would be a distraction given his role in administering the Gear Up program.

The news comes nearly two months after the Mid-Central's business manager, Scott Westerhuis, killed his wife and four children before setting fire to their Platte home and killing himself.

The murder-suicide prompted a joint state and federal probe into financial issues at Mid-Central that is ongoing. Auditor General Martin Guindon launched a separate investigation into Mid-Central and other groups that had contracted with it.

Schopp: Gear Up reviews didn't spot financial crimes

Guericke told Argus Leader Media following the monthly meeting Thursday that he wouldn't provide additional comments on what the board said behind closed doors.

The board also voted not to renew contracts for Brian Wagner, a former outreach coordinator, as well as Doris Stiles, Pam Uecker and Janelle Stewart, who were on Mid-Central's staff working with early childhood development.

Wagner also works at the American Indian Institute for Innovation (AIII) as its director of student services.

Wagner, Phelps and Scott Westerhuis were involved with both the AIII and Gear Up. In 2008, Westerhuis was involved in forming the AIII. In the most recent tax filing with the IRS, Phelps was listed as the CEO of AIII and Westerhuis was listed as chief financial officer.

Even though Westerhuis was the CFO for AIII and business manager for Mid Central, Mid Central awarded lucrative contracts to AIII to help administer the Gear Up grant.

On Sept. 10, one week before Westerhuis murdered his family, the Mid Central board approved more than $105,000 to AIII for items tagged as AIII salaries and “Gear Up reimbursement.” In March, the Mid Central board approved a supplemental budget that included $760,000 for AIII.

Westerhuis also formed a group known as the Oceti Sakowin Education Consortium, which also worked under the Gear Up grant. Westerhuis’ wife, who worked at Mid Central, was also the business manager for Oceti. The group’s most recent tax filing indicates she was paid $38,521 to be Oceti’s business manager.

According to his LinkedIn profile, Wagner also worked for the Oceti Consortium before working for AIII.

Gear Up contract at heart of murders?

Guericke declined comment on the board's decision to accept Phelps' resignation or on the vote to not renew the other four contracts.

Phelps, like Westerhuis, appeared to be directly employed by Mid-Central. In June of this year, the Mid-Central board approved a number of payouts for unused vacation and sick time. Phelps received a $950 payout. Westerhuis received a $750 payout, and his wife, Nicole, $625. Wagner also received a $650 payout.

Phelps did not immediately respond to an email, and a number listed for him was not taking messages.

According to Mid Central documents, Stiles was paid for work she performed at the Fort Thompson, Crow Creek and Lower Brule reservations. A number listed to her was not answered.

Uecker was listed as an education specialist on Mid Central’s staff page. Mid Central documents show that she did work on Crow Creek. A man who answered a line listed in her name said she was out of town and unavailable.

Stewart was also reimbursed for work on the Crow Creek Reservation. There was no answer on a line listed in her name.

The board also voted unanimously Thursday to obtain the contents of a safety deposit box kept at First Fidelity Bank in Mid-Central's name. Guericke said Scott Westerhuis signed for the box as many as 15 years ago. He said he believed it contains financial documents related to the cooperative.

Guericke said he would turn over the documents to the South Dakota Division of Criminal Investigation if they proved valuable.

Follow Dana Ferguson on Twitter @bydanaferguson