BISMARCK, N.D.—The North Dakota Supreme Court voted 4-1 Friday to uphold the felony conviction of the former director of the state’s monopoly provider of workers compensation insurance.

A jury in 2008 convicted Sandy Blunt, who served as executive director of Workforce Safety & Insurance from 2004-2007, of “misapplying more than $10,000 in WSI funds for gift certificates given to WSI employees; food, beverages, flowers, balloons, decorations, costume rentals, ornaments, and gifts for WSI meetings; and food and convention expenses provided to legislators,” court records state.

Mr. Blunt appealed, arguing among other issues that the trial court erred when it did not acquit him after concluding there was insufficient evidence to prove certain allegations. He also argued that the trial court incorrectly instructed the jury.

However, the North Dakota Supreme Court majority ruled Friday that the trial court’s actions were proper.

Chief Justice Gerald VandeWalle disagreed with part of the majority’s ruling. He said Mr. Blunt should have been found guilty of a misdemeanor, not a felony.

A jury reportedly found Mr. Blunt guilty of a felony charge punishable by up to 10 years in prison and a $10,000 fine. Mr. Blunt reportedly was given a two-year deferred sentence, fined $2,000 and ordered to do 1,000 hours of community service.