Of Safes and Smoke

by Eve Fisher

Do you remember the South Dakota GEAR UP! scandal?  The one that got started when, early in the morning of September 17, 2015, a fire destroyed the home of Scott and Nicole Westerhuis and their four children in Platte, South Dakota?  And they were all later found to be shot to death?

Quick Note:  (GEAR UP! is a federal grant program to get financial assistance to low-income students; here in SD it's primary aim was supposed to be helping Native American students.)  

SD AG Marty Jackley

Now, my regular readers may remember that South Dakota Attorney General Marty Jackley determined that Scott Westerhuis shot his wife and children, torched the house, and then shot himself, all because he was about to be caught for embezzling enough funds to build a $1.3 million rural home, a $900,000 gym complete with basketball court, etc., etc., etc., on an official combined salary (his and his wife's) from Mid Central Educational Co-Op of $130,000.  Later, it turned out that the Westerhuises had set up a number of shell organizations, and given themselves hefty salaries from them all.

Well, I'm happy to announce that the General Audit of Mid Central and GEAR UP! has finally been released and it shows:

(1) Scott and Nicole Westerhuis took nearly $8 million out of Mid Central's bank account without authorization to cover the salaries of their non-profit organizations. Supposedly most of that money was returned to Mid Central (how, when, where?), but $1.4 million was still missing at the time of the Westerhuis family's deaths.

(2) The Mid Central Board and its director, Dan Guericke, didn't have enough oversight and never addressed the risks created by Scott and Nicole Westerhuis having roles in the non-profits they set up to take the GEAR UP! grant money.

(3) Guericke didn't get approval by the board for 17 contracts and a number of payments made without contracts with the Westerhuises.

Naturally, the blame game has begun:

• Mid Central's board is blaming the South Dakota Department of Education ("lead partner" in the GEAR UP! grant and responsible for ensuring the project was carried out in accordance to federal rules and regulations).  
• The SD DOE says it did its job of conducting reviews of grant expenses and tightened up its controls when it began noticing issues in 2014, which is why it cancelled its contract with Mid Central right before the Westerhuis tragedy.  
• The Mid Central board's responded that, "no amount of reasonable oversight would have detected the complex scheme of fraudulent and illegal activities conducted by Scott and Nicole Westerhuis."  (Angela Kennecke, KELO TV)  

• NOTE:  I once put together five years of an organization's accounts from a checking account register.  You can figure out a lot if you just follow the money...

• Also, Cory's blog Dakota Free Press has all the facts and figures that we have so far, and all the excuses piled up so far.

So, June 30, 2017, Mid Central will shut down. 12 of its 13 members have formed Core Educational Cooperative.  The same staff of Mid Central (those who are not going to trial) are now going to work for Core (at least half of them had to have conflict-of-interest waivers to work for Mid Central, and will now have to have conflict-of-interest waivers to be able to work for Core); the Mid Central Board is liquidating their assets (even though $1.4 million in tax-payer money is still owed to our long-suffering public).  Please see Cory Heidelberger's article at Dakota Free Press for a fuller experience of how deep it's getting piled.  Again...

Meanwhile, no one's come forward yet to untangle the following mysteries:
(1) Who called Nicole's cell phone in the middle of the night, right before the fire?
(2) Why did Mid Central Educational Co-op, which owned the Westerhuis cell phones, cancel them and wipe the records the next morning, before the ashes from the arson had even cooled?
(3) What did Mid Central Educational Co-op Director Dan Guericke talk about with Scott Westerhuis for an hour on the evening before the tragedy?  (Guericke told the board the two really didn't talk about much at all.)
(4) What happened to the Westerhuis safe, which trotted out of the house like a trained pig right before the house was torched?

Yes, there's going to be a trial of 3 Mid Central employees, including Director Guericke.  Maybe the questions will be answered then...  But I'm not holding my breath.  Will keep you posted.

The other big news of the week hearkens back to last year, when the Flandreau Santee Sioux Tribe reversed course on opening America's first Tribal Marijuana Coffee Shop, and burned the whole crop in November.  (They had been warned that they were going to be raided by federal officials.)  AG Jackley was suspicious that they hadn't burned it all, and talked about charges.  And he did.  He charged Colorado marijuana industry consultants Eric Hagen and Jonathan Hunt for helping the tribe set up their grow room, etc.  (BTW, State AGs can’t prosecute non-Indians for crimes on reservations, but Jackley argued that his office had jurisdiction to prosecute victimless crimes committed by non-Indians.) Hunt rolled over and pled guilty but Hagen went to trial: and was acquitted by a jury. (Hagen testified that he was simply a consultant with experience in the industry who had been hired by the tribe, and apparently the jury agreed with him.) Marty Jackley was restrained, saying that he respected the jury's verdict.  (See the Argus Leader article for more details.)

Many people believe that the reason Jackley pursued this lawsuit was because he and current SD Rep. Kristi Noem (R) are going to duke it out for the South Dakota Governor's Office next year, and he's trying to get out front on the law & order issue. (Most of us think taxes and health care would be more salient...) But, as we move into yet another election year, the questions pile up:
Will GEAR UP! come up?
Will crop insurance?
Will marijuana?
Will riding horses?
Will let you know.

Meanwhile, a friend just told me that a forrmer public works director (no names were named) said that South Dakota doesn't really need federal money for infrastructure, because driving on bumpy roads isn't all that much of an inconvenience. My friend pointed out that tourists might disagree & he said tourism doesn't impact the state economy that much...

Crazy Horse Memorial - Photo by TBennert on Wikipedia

Mount Rushmore - Wikipedia

Badlands National Park - Wikipedia

The Needles - photo courtesy of
Doug Knuth - https://www.flickr.com/photos/dknuth/7677770944/
Wikipedia

Bear Butte - photo courtesy of
Jsoo1, as English Wikipedia image: en:Image:Bearbutte4.jpg

Sturgis motorcycle rally - Photo courtesy of
Cumulus Clouds, Wikipedia

Are our public officials TRYING to run our economy into the ground, or are they just stupid?

More later, from South Dakota, where we talk like Mayberry, act like Goodfellas, and the crazy just keeps on coming.

 

More Updates From South Dakota

One of the fun things about having moved around a lot is that you learn that most places look a whole lot alike any more, from the strip malls to gas stations, from fast-food chains to housing developments.  And don't even get me started on the "industrial parks", where large metal sheds are the new factories (no windows, two doors, completely anonymous).  Even Josiah Bounderby would think they were a little too utilitarian.
On the other hand, the other fun thing you learn is that, underneath all that sameness, there are real differences.

One thing that puzzled me when I first moved up here, was why there were so many cornfields standing, unharvested, well into November, December, January, February...  I mean, there's brown corn, with cobs, with snow.  So I asked about that:  "Was there some sort of blight?" And was told that the corn was freeze-drying in the fields, to save the cost of corn dryers.  Who knew?  I'd been living in the South for the last 17 years, where they harvest at harvest time, i.e., the fall, because if they leave the corn in the field, it'll rot with all the rain.  Up here...  well, we're colder than that.

Here's another puzzler:

There's lots of signs here in South Dakota for "Limousin Service". As a newcomer, I had two questions:

(1) why were there so many limousine services in rural South Dakota?
(2) why didn't they spell it right?

Later I learned that a Limousin (outside of Sioux Falls) is a cow. French origin, from the Limousin, but all over the place up here, along with Angus, Shorthorn, Simmenthal, etc.   And, of course, Limousin Service is about breeding.  (Which sometimes happens in limousines, too, but we won't get into that.)

BTW, this is NOT a misspelling, but deliberate:



There are more than one of these signs along I-29 between Sioux Falls and Mitchell.  Dick knows how to make you look.  Betcha he gets a lot of calls, too.

BTW, this is why I regularly put characters asking stupid questions into my stories.  God knows I've done it often enough.

Thankfully, there are other ways to find out what's going on in a new area than running around asking crazy questions.  For one thing, find out who's the biggest gossip in town and park yourself next to him at the Norseman's Bar or her down at the Laskin Cafe.

Another way is to read the local paper.  And not just the local daily paper, but the local weekly paper, which services the whole county.  We have one, called "The Peach".  If you need field irrigation wells, farm & home wells, high capacity pumps; if you want to buy a limousin 2 year old bull or an Angus yearling; if you need retrenching or a ride to Branson to see Daniel O'Donnell; or any sort of job in the healthcare, farming, or hog confinement industry, the Peach is the place to go.

Did I mention barn straightening?  Seed cleaning?  Bean stubble baling?

Also pork loin feeds, and church suppers, all of which are other places where you can go and get fed while catching up on the news/gossip/weather report.

And then there are the Locals, where we find out what to do with our spare time:

• Dist. 8 Conservatives Luncheon
• Laskin Duplicate Bridge
• Arts Council
• Alcoholics Anonymous 
• Sr. Citizens Dance (hugely popular; if you're a guy who loves to dance, you will not sit down for longer than it takes to have a cup of coffee or a highball to pep you up for the next dance.)
• Christian Motorcyclists Association
• VFW Auxiliary Sunday Brunch - every Sunday, great pancakes, come on down!
• The Country Swingers (more dancing; get your mind out of the gutter) 

Now granted, it's not the Agony Column that Sherlock Holmes read every day, but things slip in.

Like what happened to the person who posted "Acres of good used hog equipment for sale"?  What happened to THAT hog containment operation?  And why does s/he say, "Save this ad"?

Or why is someone "looking for used mobile homes, 1995 or older, will pay CASH."  Do they breed? Are they refurbished and sold as new?  Or are they being shipped up to the Bakken for the man-camps?

Or the sale of "Positive Rain Gutters".  (Watch out for negative rain gutters, they will leak and you.)

And there are auctions galore, of course.  These are important, not only because you can bid on everything from TOOLS OF ALL KINDS (and they ain't kidding!) to Antiques, Trucks, Household Goods, Implements, Stationary Engines, Parts & Pieces, and the land itself.  Auctions are where people gather.  They last all day; food (or at least coffee) is often served; and people stand around and catch up on everything, from who's there and who isn't.

And speaking of auctions, we had a humdinger back in September.  You remember the Gear Up! scandal, where, early in the morning of September 17, 2015, a fire destroyed the home of Scott and Nicole Westerhuis and their four children in Platte, South Dakota.  Our Attorney General Marty Jackley determined that Scott Westerhuis shot his entire family, torched the house, and then shot himself, all because he was about to be caught for embezzling enough funds - and no one still knows how much - to build a $1.3 million rural home, a $900,000 gym complete with basketball court, etc., etc., etc., on a combined salary of $130,000.

Well, look to your right, folks.  Yes, they auctioned off what stuff survived the fire that night.  For a detailed look at what was on auction, read Cory Heidelberger's blog HERE.

As you might expect, the auction was a major topic of discussion around town.  Many of us agreed that we would not be anxious to have any item from that property because we are almost all superstitious, and feel like the TVs might go on and off by themselves, or perhaps the desk roller chairs might start swiveling around in the middle of the night, like at, say 2:57 AM when someone used the Westerhuis landline to call Nicole Westerhuis' cell phone...

The land itself was sold at auction to the Platte Area Ministerial Association, who plan to open an interdenominational Christian camp there.  Unfortunately, they only had the $37,000 down payment and are trying to raise the rest of the $370,000 bid.  They've set up a GoFundMe page, which hopefully will work.  (Although I can't but wonder if an exorcism might also help...)

And where did the funds that were raised go?  To pay for the funerals; compensation for estate representatives and attorneys; a dozen credit card companies, banks, and workers.  Meanwhile, Gear Up! will not be reimbursed nor, apparently, the State of South Dakota.

And speaking of Gear Up - Mid Central Educational Co-op Director Dan Guericke is accused of backdating contracts to avoid a government audit, plus sighing at least 17 illegally secret contracts on behalf of Mid Central worth $3.8 million. Where, oh, where did the money go? (see all of Angela Kennecke's report HERE.

Speaking of Guericke and Westerhuis, "Guericke spent more than an hour on the phone with Scott Westerhuis the evening before the tragedy and when the board questioned him about what was said, sources tell me that Guericke told them the two really didn't talk about much at all."  Mm-hmm.

Did I mention that they STILL haven't found Scott Westerhuis safe?

Ah, South Dakota, where we talk like Mayberry, act like Goodfellas, and the crazy just keeps on coming.

 

Barney Got a Gun

by Eve Fisher

I hope everyone had a Happy Easter, Good Passover, and other appropriate holiday.  Up here, one of our Easter Eggs held indictments - at last - for three in one of our South Dakota scandals - Gear Up!

(Wouldn't you know it, the cheap one, only a few million missing, whereas EB-5, with $120 million missing taxpayer dollars, is still blamed on the guy who supposedly shot himself in the stomach in a field while hunting...)  

But let us rejoice in small favors.  What happened was that our own Attorney General, Marty ("I'm going to be running for governor in 2018, so I need to get something on paper") Jackley held a press conference and announced that three, count 'em THREE people were responsible for aiding and abetting Scott and Nicole Westerhuis in their embezzlement and fraud.

Quick reprise:  Early in the morning of September 17, 2015, a fire destroyed the home of Scott and Nicole Westerhuis and their four children in Platte, South Dakota.  It was later declared ed by AG Marty Jackley that Scott Westerhuis shot his entire family, torched the house, and then shot himself. There is still the ongoing mystery of who called Nicole's cell phone in the middle of the night, right before the fire, and what happened to the safe that apparently got up on its hind legs and trotted out of the house before the carnage.

36705 279th Street, Platte, SD.
screen cap from Google Maps,
2015.09.22.

Further reprise:  Scott Westerhuis was the business manager of MCEC, the Mid Central Educational Cooperative, which is, among other things, a hub for distributing federal grand monies to other non-profit organizations, including Gear Up.  Nicole also worked there.  Scott Westerhuis set up as many as 7 non-profit corporations related to Indian education, including - but not limited to! -  the American Indian Institute for Innovation, a/ka AIII.  Scott Westerhuis was incorporator of all of these, CFO of some, including AIII, and his wife Nicole was business manager of at least some of them.  And the Westerhuis family lived on a $1.3 million rural Platte property that included a 7,600 square foot house, a $900,000 gym complete with basketball court, weight-lifting area, and computers, and a loft with a meeting room, rooms for guests, and a kitchen.  This was on an official combined MCEC salary of $130,549.82.

Okay, back to the news conference!  On March 16, 2016, Marty Jackley announced that he filed charges against and arrested: 

Daniel Mark Guericke, MCEC Executive: 2 counts of falsification of evidence, class 6 felony, punishable by up to 2 years imprisonment in the state penitentiary and/or $4,000 fine, 4 counts of conspiracy to offer forged or fraudulent evidence, class 5 felony, punishable as a Class 6 felony, with a maximum sentence of 2 years imprisonment and/or $4,000 fine.  Full transcript of complaint here: (PDF of Complaint filed)

Stephanie A. Hubers, Former MCEC interim business manager: 1 count of grand theft, class 4 felony, punishable by up to 10 years in the state penitentiary and/or $20,000 fine, 2 counts of grand theft by deception, class 4 felony, punishable by up to 10 years in the state penitentiary and/or $20,000 fine, 3 alternative counts of receiving stolen property, class 4 felony, punishable by up to 10 years in the state penitentiary and/or $20,000 fine.

Stacy Lee Phelps, Former AIII (see above)/GEAR UP operator: 2 counts of falsification of evidence, class 6 felony, punishable by up to 2 years imprisonment and/or $4,000 fine, 2 counts of conspiracy to offer forged or fraudulent evidence, class 5 felony, punishable as a Class 6 felony, with a maximum sentence of 2 years imprisonment and/or $4,000 fine.

NOTE:  Mr. Phelps' lawyer is mounting a vigorous defense, based on the idea that Mr. Phelps is a scapegoat.  Perhaps he is.  (If so, he should be thanking his lucky stars that he isn't lying in a field somewhere...)  

Among other things, Guericke, Phelps, the Westerhuises and “other unknown co-conspirators" were all accused of falsifying and backdating contracts, including those of 

• Dr. Rick Melmer, the Dean of Education of the University of South Dakota, who (memorably) couldn't remember nine $1,000 in payments live on South Dakota television, and 
• Keith Moore, Governor Mike Rounds' director of Indian education. 

So far, neither Dr. Melmer (who as Secretary of Education under Governor Mike Rounds, moved supervision of Gear Up from the DOE in Pierre to MCEC in Platte), nor Mr. Moore (who also received a good chunk of change), nor former Mid-Central board chairman Lloyd Persson (who actually signed the bogus contracts) have been indicted, and Jackley has indicated that they won't be.

Nor has anyone asked Secretary of Education Melody Schopp to resign, even though she let MCEC continue their interesting approach to funding for three years after she noticed that something smelled a little funny.  Apparently, they are still looking into at least two other MCEC staffers who (according to Hubers) blackmailed some money out of Westerhuis.  Cory Heidelberger suggests that Mr. Jackley look into the board members of the American Indian Institute for Innovation, which was, apparently, the hub of moving stolen money around.  And no one has mentioned my favorite, Dr. Joseph Graves, Mitchell, SD School Superintendent, who received money from the MCEC for teaching "Teaching American History" in a state that has made it optional.  

Also, we're down to only $1 million missing, instead of $14 million, but hey, it's still better than the EB-5 mess.  Right?  

Angela Kennecke, KELO-TV

Well, right now, we're all waiting for the other shoe to drop.

"Sources who have first-hand knowledge within the Department of Education tell KELO-LAND News there were questionable expenses involving GEAR UP grant money as early as 2006 that were brought to the attention of department officials."  Angela Kennecke, 3/23/16

What this means, in South Dakota speak, where no one ever admits anything is actually WRONG, is that there's something else coming.  Possibilities:

(1) People ('sources') know that more hell is about to break loose and are getting ready to get out from under it.

(2) It's possible that someone ('sources') in the higher-ups is authorizing a leak, which is the first step to a flood.

(3) They found the safe.  

Okay, the last one's HIGHLY unlikely.  And if they do find it, it'll probably just be full of pork.

And there's the recent news that "There have been several million dollars diverted out of school funding at Lower Brule [reservation] and as a result they had to go into restructuring which is a federal requirement when you have really low school performance. And so they hired AIII Stacey Phelps, which at the time was the head of AIII, and Scott Westerhuis was the COO. So they (Lower Brule) brought in AIII to manage Lower Brule schools and that had been going on for about two years."  (Thanks again, Cory Heidelberger and the Dakota Free Press!)  And people wonder why the Reservations up here are still in a world of financial hurt...

Anyway, that's the latest update from South Dakota, where we talk like Mayberry, act like Goodfellas, and the crazy just keeps on coming.

 

A Sorry State of Affairs...

All right, I admit it, I'm running late on this blog, but I've been spending the last two weeks e-mailing my state legislators and governor over a variety of bills that seem to come straight out of the minds of ALEC. (Look it up.  Also, here:  SD Legislators with ALEC ties.) You see, we only have a 2-month legislature, that only sits 38 working days, so if I don't express my opinions now, I won't have time later on. Seriously - the session is going to end March 11. (Veto Day is March 29.)

First off, South Dakota is still officially missing $120 million dollars in EB-5 fees and investments, $14 million dollars spent (somewhere) of Gear Up! federal money, 7 people dead, cell phones wiped by the managing company the morning after an arson/murders/suicide (maybe), and a safe that had legs like a dog and walked out the door in the middle of the night. So, what's on our legislature's minds? Transgender potties and single women.

There's also House Joint Resolution 1002, which wants a new Constitutional Convention to propose “amendments to the Constitution of the United States that impose fiscal restraints on the federal government, limit the power and jurisdiction of the federal government, and limit the terms of office for its officials and members of Congress.” That'll fly.

Meanwhile, we're last in the nation for teacher pay, and our legislature is trying desperately, DESPERATELY to not put into action Governor Daugaard's proposal to increase sales tax by 1/2 of a cent to pay for increases. My favorite excuses are (1) that they haven't had time to read the bill and (2) that they haven't had time to come up with an alternate funding proposal. They've known about this since December. This is called kicking the can so far down the road that maybe it will disappear. At one point the House rejected it. Finally, though, late yesterday, through sheer shaming by most of us citizenry, it passed. We will no longer be 50th.

Wild Bill Janklow

There was also HB 1161, which would preemptively render useless an intiative that we the people are planning on voting on in November to rein in payday loans. South Dakota is, in case you don't know it, the usury capital of the country, thanks to the 1978 SCOTUS ruling in Marquette Nat. Bank of Minneapolis v. First of Omaha Service Corp, which (summed up) says that your individual state anti-usury laws cannot be enforced against nationally chartered banks located out of state. Our then governor, "Wild Bill" Janklow, heard that and persuaded the legislature to pass a bill that repealed South Dakota's cap on interest rates. And so Citibank, Wells Fargo, and other institutions moved here and life is sweet.

My favorite bill was HB 1107, which was "to ensure government nondiscrimination in matters of religious beliefs and moral convictions," as long as their religious beliefs and moral convictions were the following:

The Compound, West River in Pringle, South Dakota

1. Marriage is or should only be recognized as the union of one man and one woman;
2. Sexual relations are properly reserved to marriage; or
3. The terms male or man and female or woman refer to distinct and immutable biological sexes that are determined by anatomy and genetics by the time of birth.

(I have yet to determine why we apparently have religious beliefs and moral convictions about sex: what about usury? war? violence? lying? greed?)

Anyway, one of the great ironies of this bill is that at least one of the sponsors was an unmarried man who posted pictures of himself and his hot girlfriend all over social media. (It's a small state: you can find these things out.) I wrote many of my legislators about this bill, but my first question wasn't the obvious, "And were you a virgin on your wedding night?" Instead, it was, "Does this mean you guys are finally going to take on the polygamous sects living in compounds out West River?" (No one answered that question.) I also pointed out that birth anatomy and birth genetics can be entirely different (I used to work at Medical Genetics - see my blog post here (Medical Genetics). Everyone assured me that this was a non-discriminatory bill, to which I replied, politely, "Bull hockey." This bill has been - thankfully - tabled. Hopefully it will stay that way.

NEWS FLASH: The feds have actually taken on the polygamous sect led by Warren Jeffs' brother Seth in Pringle, South Dakota over food stamp fraud! Huzzah! Federal Probe Shows Details of Polygamous Sect. BTW, to those who don't know, the way these polygamous sects get around the laws against polygamy is by having "spiritual" marriages, which are not registered anywhere. The women - usually child brides, with no power of refusal - are then registered for food stamps, etc., as single mothers. Sadly, most of their sons are booted out of the compound as soon as they get to puberty, because there aren't enough brides to go around, since the old men are marrying all the daughters as soon as they hit puberty. Now you know why I asked about that...

But the one that's taken up most of my writing time is the transgender potty bill, which would would prohibit public school students from using a bathroom or locker room for a sex other than theirs at birth. (We really made the national news with that one. Sigh.) It passed the House, it passed the Senate, and now it's on Governor Daugaard's desk. I've been writing him almost every day, with at least one of the following arguments:

1. Transgender people don't want to do anything but use the bathroom safely. A boy who is transgendering to a girl doesn't want to assault girls, he wants to become one. A girl who is transgendering to a boy doesn't want to assault boys, she wants to become one.
2. Every student I've talked to doesn't understand what all the fuss is about. They all know some transgender students and have no problem with them using whichever bathroom they're comfortable in. (Bathrooms have stalls, with doors that lock.)
3. Gender is something that is not obvious, and is not always determined at birth. (See my Medical Genetics article link above.)
4. There is one bathroom which everyone uses - old and young, straight and gay, male and female, adults and children - and no one is worried about assault or trauma or shock: it's the one in your home. You go in, and shut the door.

The latest one - and I'm about to start writing my legislators on as soon as I finish this blog - is SB 159, which gives insurance companies credits on their premium and annuity taxes for granting “scholarships” for private K-12 school tuition to low-income students. The fun part of this is that the legislator who sponsored this bill is married to (who'd a thunk it?) the founder and owner since 1972 of an insurance company, and was past president of the Sioux Falls Catholic Schools Foundation, and past chairman of Advanced Gifts for the O’Gorman High School Building Funding Drive. Great joy in the morning, who could possibly think there was any conflict of interest?

What's especially irritating about all of this is that we're a relatively poor state; we are, as I said, ranked last in the nation for teacher pay. Governor Daugaard just refused to expand Medicaid again, after he said he would ONLY if the feds will move all Native American healthcare to their dime. Well, the feds did, and now Daugaard announced today that South Dakota still "can't afford" to expand Medicaid - keep kicking that can. Our infrastructure and roads are constantly crumbling (we have hard winters), and, as I said, we have over $120 million missing in taxpayer funds on scandals and corruption. But, rather than deal with any of these problems, our legislature keeps trying to pass bills that will only lead to lawsuits. Apparently, we have plenty of money for those. Not for investigating things that are really and truly affecting us right now.

Anyway, that's the latest update from South Dakota, were we talk like Mayberry, act like Goodfellas, and the crazy just keeps on coming.



NOTE: Huzzah! Daugaard vetoed the transgender potty bill!

The Chinese Are Coming!

A while back I wrote a column called "A Little Light Corruption"  about how South Dakota looks like Mayberry and acts like Goodfellas.  The body count is still only at seven (thank God), but the money is getting weirder by the minute.
For one thing, 35 Chinese investors are suing the State of South Dakota for $18,550,000, claiming they got ripped off in the EB-5 (green cards for a $500,000 investment) program.

And Joop Bollen (a Dutch foreign national), who somehow was allowed by our own then-Governor Mike Rounds (currently our US Senator) and our current Attorney General Marty Jackley, to privatize EB-5 and turn it over to himself via his own corporation (SDRC, Inc.) is now suing the State for defamation of character.

And our AG, instead of issuing warrants, is asking the court to freeze Joop's assets which are, in one bank account, around a million dollars.

NOTE:  Remember, originally, AG Jackley determined that the only "misappropriated" funds from EB-5 was the $500,000 that Richard Benda supposedly stole before supposedly killing himself in a field.  Apparently things have changed.  Although Marty Jackley is keeping as quiet as a tomb.

Joop Bollen and then-Governor,
current SD Senator, Mike Rounds

SECOND NOTE:  Mr. Bollen has, throughout, been treated with kid gloves.  He's never even been subpoenaed.  But the State of South Dakota has finally sued his corporation, SDRC, Inc... for documents.  Like, before they're shredded. 

THIRD NOTE:  Despite the Chinese investor losses, and Mr. Bollen's interesting bank account, South Dakota is still officially missing $120 million dollars in EB-5 fees and investments.  Where did it go?  Well, the state deficit in the last year of Mike Rounds' governorship was $120 million, so it didn't go there...  

Repeat after me:  "Life is always going to be stranger than fiction, because fiction has to be convincing, and life doesn't." Author Neil Gaiman.

Okay, on to GEAR UP!  Because we can't have just one major scandal about disappearing federal grant dollars in our tiny state.

A whole lot of  money (almost $3.5 million in 2011) went to a whole lot of people, except that almost none of it went to what the purpose of the grant was:  to give scholarships and education to Native Americans.  In fact, while 50-75% of all GEAR UP funds were supposed to be spent on scholarships according to the federal grant requirements, South Dakota requested (and apparently got) a waiver to spend NO money on scholarships, but to spend 100 percent of the grant on college preparedness and college readiness. And of course the best way to prepare Native American students for college was to hire endless consultants and directors of various sub-corporations.  (Angela Kennecke investigation)  The result is, $14 million dollars spent (somewhere), and 20 people went to college.   As my blogger friend Cory says, wouldn't it have been cheaper just to give the kids scholarships?  (dakotafreepress.com/2015/12/31/)


Some of you may remember from my last post on this that the Westerhuis' cell phones were cancelled the day after the arson / murder / suicides, and all the records were wiped, including who made a call and left a voice mail about 20 minutes before the fire.  As it turns out, the Westerhuis cell phones were through the Mid-Central Educational Cooperative (MCEC, the hub corporation for GEAR UP money, and for which the deceased Westerhuises worked). And it was MCEC that cancelled the phones and had the records wiped.  No explanation why they would do this before the ashes had even cooled on the ground...

And you may also remember that there was a missing safe, which apparently had legs like a dog and got up and trotted off because it hasn't been found yet.

From the "It can't get any weirder than this" files:

Governor Dugaard and Secretary of Education Melody Schopp
at the Interview

The US Department of Education tells KELOLAND News that in 2014, the South Dakota GEAR UP State grant file was destroyed and none of the documents are available.  (More Angela Kennecke investigation)

When KELO-TV investigative reporter Angela Kennecke asked for an interview with Secretary of Education Melody Schopp about GEAR UP and MCEC, she was told by the governor's office that she could only talk to Schopp with Governor Dugaard present. (see photo to the right)  Still trying to figure out whose hand needed holding...

And the Mid-Central Educational Cooperative had a forensic audit of their books, and presented it to a public meeting of the MCEC board. Said the auditors:  “We did not have access to financial records or other information from any other business or individuals.”  (For example, any of the multiple organizations that the deceased Mr. Westerhuis set up.)  And neither MCEC board members, nor the public, nor the media were allowed to ask any questions or even speak at the public meeting.  (http://dakotafreepress.com/?s=audit)

Just another day in South Dakota, where federal grant money can disappear like magic.

Did I mention that 4 in every 10 dollars in South Dakota revenue come from the federal government? (10 States most dependent on Federal Government)

Repeat after me:  "Life is always going to be stranger than fiction, because fiction has to be convincing, and life doesn't." Author Neil Gaiman.

Halloween Ain't Over By A Long Shot

I know, Halloween is over, but there are some things that just have to be mopped up.
First up, "verdâtre". In the King James Version, Revelations 6:8 reads: "And I looked, and behold a pale horse: and his name that sat on him was Death, and Hell followed with him. And power was given unto them over the fourth part of the earth, to kill with sword, and with hunger, and with death, and with the beasts of the earth." But, believe it or not, it gets creepier in the French SG21 translation, where that pale horse is "verdâtre", or "greenish." Just like pus. Or decay. Or the Frankenstein's monster, which only adds to the oomph, don't you think?

Except that the Frankenstein's monster was actually yellow in the original. But then, 60% of all newborns get jaundice.

Secondly, thanks to John Sutherland, who in his collection of literary questions, "Who Betrays Elizabeth Bennet?" raises the best question of all, "Why isn't everyone a vampire?" I'm going to quote Mr. Sutherland here (pp. 239-240):

"Let us assume that each vampire infects one victim a year, and that this victim dies during the course of the year to become, in turn, a vampire. Since they are immortal, each vampire will form the centre of an annually expanding circle, each of which will become the centre of his or her own circle. The circle will widen at the rate of 2(n-1). In year one (say, 1500) there is one new vampire, in 1501, two, in 1502, 4; in 1503, 8; and so, by the simple process of exponential increase, there will be 1,204 new vampires in 1510. And, since they never die, the numbers are swollen cumulatively. Within thirty-one years the vampire population will have reached 2 billion. By 1897, the presumable date of Stoker's novel, the numbers are incalculably vast. In fact, so vast that they will probably have collapsed to nil. Long since everyone will have been vampirized; there will be no more food-supply... Dracula and his kind will die out. And with them, the human race."

Going out, we presume, with a whimper of hunger…

BTW, this idea works perfectly with werewolves, too. After all, if you get scratched/bitten by a werewolf, you become a werewolf, so we should all be werewolves by now, right? And, on top of that, the children of werewolves become werewolves, making (as a friend of mine pointed out) werewolves the original anchor babies!

Meanwhile, back in SD, the dog and pony show continues.

Attorney General Marty Jackley (remember him?) held a press conference on Tuesday, November 3, 2015, at 1:00 p.m., at the Community Center adjacent to the Platte City Hall building, Platte, S.D, to discuss the investigation in the deaths of the Westerhuis family.

For the saga to date about the Westerhuises, the federal GEAR UP monies, and a variety of missing funds, see my last SleuthSayers post, "A Little Light Corruption".

I had already told everyone who expected a great deal of detail, substance, even some actual news, that they should meet outside, later, for a special preview of "Bambi Goes Hunting With an Uzi." Jackley did not disappoint. He announced that it was obvious that Mr. Westerhuis - after hearing that the GEAR UP! grant was being cancelled - shot and killed his wife and his four children, poured [unidentified] accelerant all over the house and then shot himself. Period. This all happened some time around 3 A.M. Apparently the Westerhuises had surveillance cameras, but they recorded nothing, and neither of the two (!) security systems were tripped.

Two interesting and very understated points:

1. Someone called Nicole Westerhuis' cell phone from the Westerhuis landline, leaving a voice message, but the message can't be retrieved because the account was cancelled. (Obvious questions:  When were the accounts cancelled?  Who cancelled them?)
2. The Westerhuis safe is missing. Mr. Jackley asked that if anyone knew anything about the whereabouts of the safe to please call him.  

Please feel free to comment wildly. I certainly have.

Meanwhile, a new bit of crazy has arrived in time for Halloween. Now, this is a two-parter:

An original, handmade South Dakota flag dating back to Deadwood’s Old West days that went missing from former Secretary of State Jason Gant’s office in January has been returned to its home in the state Capitol. Garrett Devries, former employee of former South Dakota Secretary of State Jason Gant, former intern of our own Senator John Thune, and "Republican operative," picked it up and took it with him to Washington because "it was cool." (I suppose he never heard that theft was wrong...) He's being charged with a misdemeanor, and is working on a plea deal. (Funny how we can spend money and manpower tracking down a flag, but not the $147 million lost to the EB-5 program...)

Former Secretary of State Jason Gant,
looking a little spooked for Halloween.

Meanwhile, Mr. Gant is accused of being "$43,000 short of what the in-house books said, losing three iPad Minis out of thirty purchased for his over-hyped military voting program, misappropriating tens of thousands of federal Help America Vote Act dollars, failing his statutory duty to print a legislative manual, and letting an employee walk off with a historic state flag." (See above)
(http://dakotafreepress.com/2015/10/30/gant-admits-but-minimizes-mistakes-krebs-needs-democratic-backup-in-pierre/ - once again, thank you to Cory Heidelberger!)
Mr. Gant has admitted that he made "mistakes", but also claims that "his people were just too busy with other projects to get to reconciling the bank accounts... or turn in invoices relating to the federal HAVA money." As for the iPads, well, crap happens.

NOTE:  I love South Dakota: one guy (co-director for Leadership South Dakota) can't remember nine $1000 payments for his consulting services, and another guy (a former Secretary of State) misplaces iPads all over the place and loses an historical, hand-made state flag, not to mention a bunch of bucks...

And did you know it costs $18,518.51 per overseas soldier to get them to vote? To quote from our own Argus Leader:

The Secretary of State's office under former secretary Jason Gant used more than $500,000 in federal grant money to help 27 active military members vote last year... "I know that 27 doesn't sound like a wonderful number, but it was a program that 27 people took advantage of," Gant said.... [And he] spent $79,000 on a public relations and marketing firm to publicize the program on a trip to Germany. "The beauty of the system is that if in a few years there were thousands of South Dakotans overseas, they could be using it," said Gant.

Honey, there's only 853,000 people in the entire state - how many thousands are heading overseas? Is this something we should be worried about? Aware of? Prepared for? Pack our bags?

Here’re a few hints, Mr. Gant:
(1) Start smartening up your explanations/excuses/reasons/justifications.
(2) Watch the Maltese Falcon and think about the character of Wilmer, the fall guy.
(3) Don't go hunting alone.
(4) Keep your doors locked at night.  Maybe get a dog.