Former Watertown Contractor Pleads Guilty to Reduced Charge in Misappropriation Case
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Former Watertown Contractor Pleads Guilty to Reduced Charge in Misappropriation Case

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Northeast Radio SD News - Watertown, SD - A criminal case involving allegations of financial misconduct by a local contractor has concluded in Codington County following a plea agreement and the reduction of charges. Eric Skott, 48, of Watertown, entered a guilty plea on February 4, 2026, to a misdemeanor charge related to the misuse of construction funds.


On February 4, 2026, the Codington County State’s Attorney’s Office filed two significant documents that altered the course of the proceedings:


·        Dismissal of Felony: State’s Attorney Alison Bakken dismissed the original indictment, which had charged Skott with Misappropriation of Funds by Contractor—Grand Theft, a Class 4 Felony. The dismissal was made “without prejudice” and “in the best interest of the State”.


·        Amended Complaint: Simultaneously, a new “Amended Complaint” was filed, charging Skott with a reduced offense of Misappropriation of Funds—Class 1 Misdemeanor.


The amended charge alleged that on or about January 3, 2023, while acting as a contractor on a new home build in Codington County, Skott knowingly used more than $400 but less than $1,000 of payments for purposes other than paying for labor, materials, or machinery. This occurred while accounts for those services remained unpaid and due.


The original felony indictment had estimated the misused amount between $5,000 and $100,000.


Sentencing and Penalties

Upon his guilty plea to the Class 1 Misdemeanor, the court granted Skott a Suspended Imposition of Sentence. The conditions of the sentence include:


·        Financial Penalties: Skott was ordered to pay a $500 fine, $50 in court costs, and $46.50 in surcharges, totaling $596.50.

·        Incarceration: No jail time was ordered, and no restitution was noted in the final disposition.

·        Probationary Term: Skott must remain a law-abiding citizen for a period of 360 days.


Under South Dakota law, a Class 1 Misdemeanor typically carries a maximum penalty of one year in county jail and/or a $2,000 fine. By receiving a Suspended Imposition of Sentence, Skott’s conviction may be sealed from his public record if he successfully completes the terms of his probation.


Source of the initial story written by Steve Jurrens under KXLG Radio 99.1

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