Stacy Phelps Finishes Testimony

SIOUX FALLS, S.D. – Wednesday was a long day with plenty of questions for Stacy Phelps. The “Gear Up” defendant is facing charges for allegedly falsifying evidence by backdating contracts.

His defense lawyer says Phelps was duped by Scott Westerhuis, who embezzled more than a million dollars before killing his family and himself in 2015.

Phelps finishing testifying around 5 p.m. on Wednesday.

Phelps says that Westerhuis never asked him to avoid an audit. Phelps echoed what Dan Guericke testified last week. Phelps said that Westerhuis couldn’t find an original contract, so he asked Phelps to sign an amended one and backdate it. Phelps said he signed it without a second thought.

However, the prosecution argued this wasn’t really an “amended” contract because the amendment concerned changing the reimbursement protocol and the reimbursement process never changed after the contract was signed. Throughout his career, Phelps spent money with his discretion, then turned the receipts in for reimbursement.

Closing arguments are expected to begin Thursday morning.

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