FROM http://eureka-wildwood.patch.com/ -
Michael Szydlowski, who previously led the Rockwood School District science department, was charged with allegedly stealing district-owned items and embezzling a significant sum of cash before he left the district's employment last June.
A former Rockwood School District leader, Michael Szydlowski, was set for a jury trial Monday morning in the St. Louis County Circuit Court in Clayton, due to charges of allegedly stealing district property prior to leaving Rockwood to assume a new job in Columbia Public Schools in Columbia, MO.
The situation started last summer after Szydlowski's last day of employment with Rockwood, June 30. Questionable charges and declines on the district's purchasing card for the science department caught the attention of Rockwood's Director of Finance K. Scott Tate. He and Kelvin McMillan, assistant superintendent of human resources, contacted police for assistance with what they stated they believed to be "illegal use" concerning the card.
Eureka Police Department reports indicate a $2,500 charge was attemped on Szydlowski's last day of Rockwood employment to Overstock.com, but was declined. A similar $2,000 attempted charge to Target also was declined that day. Lesser attempted charges, such as for a satellite radio subscription, also were cited. The charges were declined due to invalid security code entries after the card was returned to the district.
Eureka-Wildwood Patch attended what was supposed to be the trial starting at 9:30 a.m. Monday, however neither set of attorneys were present when Judge Lawrence Permuyter Jr. concluded his docket and adjourned at approximately 11:15 a.m. Permuyter told Patch he assumed the case would be continued, or that the parties must have reached some sort of settlement.
Eureka city attorney Kathy Butler is prosecuting the case. Attorney William Goldstein of Clayton is representing Szydlowski. Calls to both attorneys Monday to inquire about the case's official status were not yet returned at the time of publishing.
The Columbia Public Schools online staff directory indicate Szydlowski is presently a K-12 science coordinator for the district.
Szydlowski's Rockwood Background:
Szydlowski joined Rockwood a few years ago to overhaul the district's elementary science curriculum.
One of his most notable changes and contributions to the district was the Rockwood mobile science lab, which at the time reportedly was the only one in Missouri owned by a school district. Click here for a video about the lab. It enabled Rockwood's 9,700 students in kindergarten through fifth grade at the district's 19 elementary schools to visit it four times a year.
The mobile lab, which enamored many parents and teachers, was billed as a way to save the district money. It moved students from textbooks into its 11 hands-on workstations.
At the time, district spokespeople said its science textbooks were replaced every six years, costing $610,000 to buy new ones. Overall, the district saved $381,000 by overhauling its curriculum through the mobile lab, as reported in allBusiness.
However, this school year, the mobile lab is not in use, due to the district's budget challenges. Rockwood board of education directors told Patch that not all of the year-to-year maintenance costs for the mobile lab program were revealed at the time Szydlowski presented a case to invest in it.
Students and parents also may remember that Szydlowski was responsible for transferring the school building-centric approach to elementary science fairs to a St. Louis regional program. The switch decreased the number of individual students doing science fair projects, but promoted group-based projects at an annual, districtwide science night.
The Charges:
According to paperwork filed against Szydlowski Dec. 20, 2010, through the St. Louis County Municipal Division, Eureka's prosecutor Butler identified the following complaint charges, citing he "appropriated the property of the Rockwood School District without the consent or knowledge of the district by charging" the following:
•$13.65 on the district's credit card on March 11, 2010, to mail documents for seeking employment outside the district
•$176.95 on the same credit card for cordless drills and Quickfire Kits, and then allegedy taking them and all the following items after he left Rockwood's employment June 30
•$162.34 for a Panasonic portable DVD player
•$110 for a GPS device
•$199.99 for a version of Adobe Photoshop
•$454.14 for a GPS device used on a trip that occurred June 9-17, 2010
Missing District Science Inventory:
According to Eureka police reports, questions regarding the credit card purchases led to an online investigation of the UMB Bank database. Tate closed the actual card account, which was shared by four other district employees besides Szydlowski. Based on receipts and the district's financial accounting process, there were no other discrepancies with the other four card users, stated the police report.
However, the card process led to inventorying Rockwood's science items—leaving approximately $35,000 worth of items missing from the district's possession, indicated the police report.
Twenty days after leaving Rockwood, the police report indicated Szydlowski emailed district representatives on July 20, writing that he had found "several items that belonged to the district." The district's response was that the items had to be returned to the district by July 23.
The police report stated that Szydlowski visited Rockwood headquarters on July 21 to return "approximately $1,000 of property" and met with former Rockwood Executive Director of Curriculum and Instruction Carrie Luttrell, who informed him of the "misuse of district funds and purchasing card."
According to the report, he was given an opportunity to respond in a five-hour meeting, at which time he admitted to taking a list of specified district items, some of which were used at his home when he lived within the Rockwood School District. He also admitted to subscribing to certain memberships and extending two teacher trips, which cost the district additional funds.
Luttrell since left Rockwood this summer to join the Parkway School District as principal of Shenandoah Elementary in Chesterfield.
The report said Szydlowski indicated at the meeting he would like to make restitution to the district and "hoped the district would not choose to prosecute him."
Rockwood board of education directors then were contacted after the meeting, according to the police report, and informed of "statutes of the fraud." They then filed a complaint with Eureka police.
Legal Developments:
According to St. Louis County court documents, a certification hearing for this matter was scheduled for March 4, 2011. The hearing was continued and rescheduled for May 12, at which time a jury trial was scheduled for July 11. Then the case was continued until this Monday.
Showing posts with label Milwaukee Forensic Auditor. Show all posts
Showing posts with label Milwaukee Forensic Auditor. Show all posts
Tuesday, September 13, 2011
Monday, September 12, 2011
Brazil Evangelical leader charged with fraud
FROM http://www.taiwannews.com/ -
Federal prosecutors are charging the founder of one of Brazil's biggest evangelical churches and three other church leaders with alleged crimes including fraud, money laundering, racketeering and embezzlement.
Those named in the investigation are the founder of the Universal Church of the Kingdom of God, Bishop Edir Macedo, former congressman Joao Batista Silva, Bishop Paulo Roberto Conceicao, and the organization's financial director, Alba da Costa.
The prosecutors accuse them of sending about $236 million in church money illegally from Brazil to the United States between 1999 and 2005.
The prosecutors filed the charges Monday.
The church's communications office told the Estado de Sao Paulo newspaper that Macedo's lawyers hadn't yet reviewed the charges.
Federal prosecutors are charging the founder of one of Brazil's biggest evangelical churches and three other church leaders with alleged crimes including fraud, money laundering, racketeering and embezzlement.
Those named in the investigation are the founder of the Universal Church of the Kingdom of God, Bishop Edir Macedo, former congressman Joao Batista Silva, Bishop Paulo Roberto Conceicao, and the organization's financial director, Alba da Costa.
The prosecutors accuse them of sending about $236 million in church money illegally from Brazil to the United States between 1999 and 2005.
The prosecutors filed the charges Monday.
The church's communications office told the Estado de Sao Paulo newspaper that Macedo's lawyers hadn't yet reviewed the charges.
DA: Insufficient evidence against McKinney in California
FROM HESPERIASTAR.COM -
The district attorney’s office will not be filing charges against Hesperia Unified School District Superintendent Mark McKinney.
McKinney was notified of the decision in a letter from Deputy District Attorney R. Lewis Cope on Aug. 24.
“In response to a complaint to the Public Integrity Unit of the San Bernardino District Attorney’s Office, our office undertook an investigation of allegations that you interfered with the Hesperia Unified School District Police’s investigation into an allegation of embezzlement by a HUSD employee,” Cope’s letter reads in part.
“I first officially knew (of the investigation) when I got the letter,” McKinney said Thursday. “Although the allegation was stated, way back at Sultana High School, that they were going to make a formal claim, but this was the first verification that they actually did make a formal complaint.”
The dispute between the district and its police officers first went public in March, when Police Chief Mike Graham and Officer (and city councilman) Bill Holland accused McKinney of preventing them from investigating Sultana High School student government accounting regularities as a criminal investigation back in 2009.
A May 31 private investigator’s report commissioned by the district supported their assertion that McKinney had told Graham and other officers to stop pursuing a criminal investigation.
“Penal Code 830.32 specifies that officers employed as members of a school district police department are peace officers with authority to investigate all crimes within their jurisdiction. To interfere with the execution of those duties could be a crime,” Cope’s letter continues. “Our investigation into this matter included a review of detailed information submitted with the complaint and a legal analysis of the evidence. It is our office’s conclusion that criminal charges are not supported by the existing evidence. Hence, we are closing our files on this matter.”
“This is the verification of a truth that I already knew,” McKinney said. “If there was any doubt, this should remove it.”
On Aug. 2, Graham was placed on paid administrative leave, days before the start of the 2011-12 school year.
“I’m working daily with the police department and Sgt. (Cindy) McCarter is next in command. We talk daily,” McKinney said. He said the months-long struggle between the department and superintendent “has been unfortunate and has taken us off our goal, and I’m trying to get us refocused.”
The district attorney’s office will not be filing charges against Hesperia Unified School District Superintendent Mark McKinney.
McKinney was notified of the decision in a letter from Deputy District Attorney R. Lewis Cope on Aug. 24.
“In response to a complaint to the Public Integrity Unit of the San Bernardino District Attorney’s Office, our office undertook an investigation of allegations that you interfered with the Hesperia Unified School District Police’s investigation into an allegation of embezzlement by a HUSD employee,” Cope’s letter reads in part.
“I first officially knew (of the investigation) when I got the letter,” McKinney said Thursday. “Although the allegation was stated, way back at Sultana High School, that they were going to make a formal claim, but this was the first verification that they actually did make a formal complaint.”
The dispute between the district and its police officers first went public in March, when Police Chief Mike Graham and Officer (and city councilman) Bill Holland accused McKinney of preventing them from investigating Sultana High School student government accounting regularities as a criminal investigation back in 2009.
A May 31 private investigator’s report commissioned by the district supported their assertion that McKinney had told Graham and other officers to stop pursuing a criminal investigation.
“Penal Code 830.32 specifies that officers employed as members of a school district police department are peace officers with authority to investigate all crimes within their jurisdiction. To interfere with the execution of those duties could be a crime,” Cope’s letter continues. “Our investigation into this matter included a review of detailed information submitted with the complaint and a legal analysis of the evidence. It is our office’s conclusion that criminal charges are not supported by the existing evidence. Hence, we are closing our files on this matter.”
“This is the verification of a truth that I already knew,” McKinney said. “If there was any doubt, this should remove it.”
On Aug. 2, Graham was placed on paid administrative leave, days before the start of the 2011-12 school year.
“I’m working daily with the police department and Sgt. (Cindy) McCarter is next in command. We talk daily,” McKinney said. He said the months-long struggle between the department and superintendent “has been unfortunate and has taken us off our goal, and I’m trying to get us refocused.”
Saturday, September 3, 2011
Police investigate possible theft at St. Matthew's in Oak Creek, Wisconsin
FROM JSONLINE.COM -
Authorities are investigating a possible theft of funds from St. Matthew's Catholic Church in Oak Creek.
Church treasurer Mike Kuick confirmed Friday that the probe is ongoing and that a staff person has been placed on administrative leave pending the outcome. He said the church's finance committee noticed accounting irregularities about two months ago and turned the information over to the Oak Creek Police Department. A police spokesman said it is working with the Milwaukee County district attorney's office on the investigation.
Police and church officials declined to comment Friday on the amount.
Authorities are investigating a possible theft of funds from St. Matthew's Catholic Church in Oak Creek.
Church treasurer Mike Kuick confirmed Friday that the probe is ongoing and that a staff person has been placed on administrative leave pending the outcome. He said the church's finance committee noticed accounting irregularities about two months ago and turned the information over to the Oak Creek Police Department. A police spokesman said it is working with the Milwaukee County district attorney's office on the investigation.
Police and church officials declined to comment Friday on the amount.
Friday, August 5, 2011
Bookstore Cashier Faces Embezzlement Charges in New Mexico
FROM KOAT.COM -
A college bookstore cashier is accused of embezzling thousands, according to police.
According to the criminal complaint, Febe Estrada helped embezzle merchandise worth more than $6,000 using fraudulent credit cards.
Store surveillance video shows Estrada manually entering the numbers of the credit cards on 18 different occasions.
Estrada told police she entered the numbers for a family member and a man she came into the store with, according to the criminal complaint
A college bookstore cashier is accused of embezzling thousands, according to police.
According to the criminal complaint, Febe Estrada helped embezzle merchandise worth more than $6,000 using fraudulent credit cards.
Store surveillance video shows Estrada manually entering the numbers of the credit cards on 18 different occasions.
Estrada told police she entered the numbers for a family member and a man she came into the store with, according to the criminal complaint
Tuesday, July 19, 2011
Delta College employee arrested for embezzlement
FROM LODINEWS.COM -
A San Joaquin Delta College employee has been arrested for allegedly destroying public documents and embezzling public funds.
Robbin Gerald Sealey Jr., 28, was booked at San Joaquin County Jail around 7 p.m. Monday after being arrested by Delta College Campus Police earlier in the day.
Sealey serves as the college’s flea market coordinator; his Facebook page says he’s held the position since September 2009.
Matt Wetstein, spokesman for the college, confirmed Sealey worked for the college and said the coordinator was placed on leave during an investigation into suspected wrongdoing. Wetstein said he is unsure if the leave is paid or unpaid.
Wetstein also did not know how many records or what type of documents Sealey allegedly altered or destroyed.
Sealey’s public Facebook indicates he resides in Lockeford and graduated from Galt High School in 2001.
His page features pictures of him at a Delta College retreat in July of 2010. “Paid to dance” and “paid to eat” are two separate captions listed with photographs from the retreat.
Sealey has a tentative court date scheduled for Wednesday at San Joaquin Superior Court in Stockton, according to the San Joaquin County Sheriff’s Department website. His bail is set at $103,000.
Calls placed to the college’s student activity center were not immediately returned.
A San Joaquin Delta College employee has been arrested for allegedly destroying public documents and embezzling public funds.
Robbin Gerald Sealey Jr., 28, was booked at San Joaquin County Jail around 7 p.m. Monday after being arrested by Delta College Campus Police earlier in the day.
Sealey serves as the college’s flea market coordinator; his Facebook page says he’s held the position since September 2009.
Matt Wetstein, spokesman for the college, confirmed Sealey worked for the college and said the coordinator was placed on leave during an investigation into suspected wrongdoing. Wetstein said he is unsure if the leave is paid or unpaid.
Wetstein also did not know how many records or what type of documents Sealey allegedly altered or destroyed.
Sealey’s public Facebook indicates he resides in Lockeford and graduated from Galt High School in 2001.
His page features pictures of him at a Delta College retreat in July of 2010. “Paid to dance” and “paid to eat” are two separate captions listed with photographs from the retreat.
Sealey has a tentative court date scheduled for Wednesday at San Joaquin Superior Court in Stockton, according to the San Joaquin County Sheriff’s Department website. His bail is set at $103,000.
Calls placed to the college’s student activity center were not immediately returned.
Wednesday, July 13, 2011
Former Proctor school employee sentenced for embezzling in Vermont
FROM THE BURLINGTONFREEPRESS.COM-
A former administrative assistant at Proctor High School will serve 14 months in prison for embezzling more than $106,000 from student activity funds between 2007 and 2009.
Deborah Clough of Proctor, appearing for sentencing Tuesday before Chief Judge Christina Reiss at U.S. District Court in Rutland, also was ordered to pay $111,000 to the school’s insurance carrier, which reimbursed the school for the lost money. The $111,000 includes a $5,000 deductible fee paid by the school.
Reiss also ordered Clough to pay $19,440 to the Internal Revenue Service, based on the income she diverted to her own use.
Clough was arrested in March and immediately agreed to plead guilty to embezzlement and tax-fraud charges. In an interview with the Burlington Free Press at the time, she blamed her conduct on a “shopping addiction” and other personal issues.
“I’m really, really sorry. I wish it didn’t happen. I’m trying to make restitution,” Clough said at the time.
According to court papers, Clough wrote checks to herself from the high school’s student activity fund and fabricated other supporting documents to make the transactions appear proper.
Clough was hired by the school in August 2006. Her responsibilities included “general accounting and bookkeeping activities such as preparing purchase orders and requisitions, ordering supplies and preparing invoices for payments,” according to court papers.
She also prepared and printed school checks and had access to the school safe, the U.S. Attorney’s Office said in a statement.
At Tuesday’s sentencing, Proctor principal June Sargent told Reiss that Clough had been a trusted employee who had taken advantage of the school. Clough, in a statement read by her attorney, apologized for her actions, Assistant U.S. Attorney Eugenia Cowles said.
Clough will begin serving her prison sentence Aug. 23.
A former administrative assistant at Proctor High School will serve 14 months in prison for embezzling more than $106,000 from student activity funds between 2007 and 2009.
Deborah Clough of Proctor, appearing for sentencing Tuesday before Chief Judge Christina Reiss at U.S. District Court in Rutland, also was ordered to pay $111,000 to the school’s insurance carrier, which reimbursed the school for the lost money. The $111,000 includes a $5,000 deductible fee paid by the school.
Reiss also ordered Clough to pay $19,440 to the Internal Revenue Service, based on the income she diverted to her own use.
Clough was arrested in March and immediately agreed to plead guilty to embezzlement and tax-fraud charges. In an interview with the Burlington Free Press at the time, she blamed her conduct on a “shopping addiction” and other personal issues.
“I’m really, really sorry. I wish it didn’t happen. I’m trying to make restitution,” Clough said at the time.
According to court papers, Clough wrote checks to herself from the high school’s student activity fund and fabricated other supporting documents to make the transactions appear proper.
Clough was hired by the school in August 2006. Her responsibilities included “general accounting and bookkeeping activities such as preparing purchase orders and requisitions, ordering supplies and preparing invoices for payments,” according to court papers.
She also prepared and printed school checks and had access to the school safe, the U.S. Attorney’s Office said in a statement.
At Tuesday’s sentencing, Proctor principal June Sargent told Reiss that Clough had been a trusted employee who had taken advantage of the school. Clough, in a statement read by her attorney, apologized for her actions, Assistant U.S. Attorney Eugenia Cowles said.
Clough will begin serving her prison sentence Aug. 23.
Tuesday, July 5, 2011
Former Timberlawn PTA President Faces Embezzlement Charges in Jackson, Mississippi
FROM WAPT.COM-
A woman accused of gambling away money that was intended for students at a Jackson school is scheduled to appear in court on Tuesday.
Nicarra Nicole Johnson-Coleman was indicted in 2010 on embezzlement charges. The former Parent-Teacher Association President for Timberlawn Elementary School surrendered to police in March 2010 in connection with the disappearance of nearly $20,000, officials said.
Police said she took money using the PTA's credit cards and checks to gamble a Vicksburg casino.
Johnson surrendered her PTA position after a board member noticed the money was missing from Timberlawn’s PTA, officials said.
A woman accused of gambling away money that was intended for students at a Jackson school is scheduled to appear in court on Tuesday.
Nicarra Nicole Johnson-Coleman was indicted in 2010 on embezzlement charges. The former Parent-Teacher Association President for Timberlawn Elementary School surrendered to police in March 2010 in connection with the disappearance of nearly $20,000, officials said.
Police said she took money using the PTA's credit cards and checks to gamble a Vicksburg casino.
Johnson surrendered her PTA position after a board member noticed the money was missing from Timberlawn’s PTA, officials said.
Sunday, July 3, 2011
Theft, embezzlement can pose hits to Little League
FROM: http://www.centredaily.com/-
A new lock, a thick door and a steel bar across the shuttered front counter of the Canyon Lake Little League concession stand still couldn't prevent the youth baseball league from taking a hit.
The president of the Rapid City, S.D., league said vandals recently pounded the lock off to break in and make off with a cooler full of food and a small amount of money.
And that's small change when it comes to crimes against local Little Leagues. The volunteer-run organizations have long been the target of theft or embezzlement schemes.
The issue raised enough eyebrows that Little League International sent a letter in 2009 to all local leagues offering tips to safeguard against financial problems after noticing an uptick in stories about missing funds at local nonprofits. Guidelines include having the international parent organization perform criminal background checks on adults.
Little League's insurance provider also offers a "crime insurance" policy for leagues to purchase, also in response to reports about criminal activity, Little League International president Stephen Keener said.
The policy protects local leagues against "monetary loss caused by dishonesty, disappearance of money, securities or other property, and destruction of money or securities," reads a description of the policy from Little League.
"These are good people in communities trying to run a healthy, fun program for kids," Keener said at a recent function at Little League headquarters. "(The policy) was in response to try to put some protections in place. Obviously, nobody can afford 24-hour security."
Officials at Little League International in South Williamsport - where the World Series for 11- to 13-year-olds is played each August - note that the vast majority of leagues don't have such problems. They also say they don't necessarily hear about every instance of theft, since the national office has no direct oversight of local finances.
No matter how big or small, each break-in, report of stolen equipment or forged check charge generates headlines, given the crimes are set against the backdrops of the innocent scenes of boys and girls swinging for the sandlot fences.
"Ultimately, it affects the kids in the league," said Canyon Lake president Rich Hegre said. Any money lost seeps out of a budget that relies on fundraisers, donations and fees forked over by parents to pay for items such as uniforms or new bats and catcher's gear.
In Honolulu, parents of players in the Makakilo Kapolei Honokai Hale league had a firsthand lesson in having to rebuild after a former treasurer, Paulo Salas-Selem, pleaded guilty in September to forgery and theft.
Funds from registration fees and fundraising totaling $11,500 between December 2007 and April 2008 were deposited into a personal bank account and used to pay mortgage, credit cards and other expenses, prosecutors said. Salas-Selem was sentenced in January to five years of probation, more than $14,000 in restitution and community service, Hawaii Supervising Deputy Attorney General Christopher Young said.
Pamela Witty-Oakland, a former Makakilo league treasurer, said she was asked to return to the board and audit the books after the allegations surfaced. The league couldn't buy new equipment the next year, and some parents grew distrustful, she said.
One parent and former league board member told the Star-Advertiser of Honolulu last year that the league at one point dropped to about 100 players from a peak of 600 to 700.
Witty-Oakland's second stint on the board lasted a couple years, but she left confident the league was in much better shape and growing. The league is located in a part of Oahu that has been targeted by planners for growth, while the league itself has expanded into girls softball.
"With that, we had to re-establish credibility and re-grow the league," she said. "It's been a real effort to get back to those numbers."
In Pennsylvania, accountant William McKernan was sentenced earlier this month to 11 1/2 to 23 months in prison for embezzling money to finance a lifestyle that included vacations, private schools and strip club visits. Prosecutors said McKernan swindled $57,000 from the Lower Gwynedd Little League, part of a larger scheme involving clients totaling $1.75 million. He has repaid much of the money and apologized at his sentencing hearing earlier this month.
Local league president Jay Gelman said the case didn't have much of a financial impact this season, and that the league bounced back to have successful sponsorship and good registration numbers in 2011. They also had insurance to recover anything that wasn't returned.
Parents overall, were sympathetic, Gelman said. The league put in place stricter guidelines over finances, and turned to an outside accounting firm to oversee the books.
"It created a lot more work for the board," Gelman said. "It did cost us money, in that we had to pay for an accountant we never paid for before."
A new lock, a thick door and a steel bar across the shuttered front counter of the Canyon Lake Little League concession stand still couldn't prevent the youth baseball league from taking a hit.
The president of the Rapid City, S.D., league said vandals recently pounded the lock off to break in and make off with a cooler full of food and a small amount of money.
And that's small change when it comes to crimes against local Little Leagues. The volunteer-run organizations have long been the target of theft or embezzlement schemes.
The issue raised enough eyebrows that Little League International sent a letter in 2009 to all local leagues offering tips to safeguard against financial problems after noticing an uptick in stories about missing funds at local nonprofits. Guidelines include having the international parent organization perform criminal background checks on adults.
Little League's insurance provider also offers a "crime insurance" policy for leagues to purchase, also in response to reports about criminal activity, Little League International president Stephen Keener said.
The policy protects local leagues against "monetary loss caused by dishonesty, disappearance of money, securities or other property, and destruction of money or securities," reads a description of the policy from Little League.
"These are good people in communities trying to run a healthy, fun program for kids," Keener said at a recent function at Little League headquarters. "(The policy) was in response to try to put some protections in place. Obviously, nobody can afford 24-hour security."
Officials at Little League International in South Williamsport - where the World Series for 11- to 13-year-olds is played each August - note that the vast majority of leagues don't have such problems. They also say they don't necessarily hear about every instance of theft, since the national office has no direct oversight of local finances.
No matter how big or small, each break-in, report of stolen equipment or forged check charge generates headlines, given the crimes are set against the backdrops of the innocent scenes of boys and girls swinging for the sandlot fences.
"Ultimately, it affects the kids in the league," said Canyon Lake president Rich Hegre said. Any money lost seeps out of a budget that relies on fundraisers, donations and fees forked over by parents to pay for items such as uniforms or new bats and catcher's gear.
In Honolulu, parents of players in the Makakilo Kapolei Honokai Hale league had a firsthand lesson in having to rebuild after a former treasurer, Paulo Salas-Selem, pleaded guilty in September to forgery and theft.
Funds from registration fees and fundraising totaling $11,500 between December 2007 and April 2008 were deposited into a personal bank account and used to pay mortgage, credit cards and other expenses, prosecutors said. Salas-Selem was sentenced in January to five years of probation, more than $14,000 in restitution and community service, Hawaii Supervising Deputy Attorney General Christopher Young said.
Pamela Witty-Oakland, a former Makakilo league treasurer, said she was asked to return to the board and audit the books after the allegations surfaced. The league couldn't buy new equipment the next year, and some parents grew distrustful, she said.
One parent and former league board member told the Star-Advertiser of Honolulu last year that the league at one point dropped to about 100 players from a peak of 600 to 700.
Witty-Oakland's second stint on the board lasted a couple years, but she left confident the league was in much better shape and growing. The league is located in a part of Oahu that has been targeted by planners for growth, while the league itself has expanded into girls softball.
"With that, we had to re-establish credibility and re-grow the league," she said. "It's been a real effort to get back to those numbers."
In Pennsylvania, accountant William McKernan was sentenced earlier this month to 11 1/2 to 23 months in prison for embezzling money to finance a lifestyle that included vacations, private schools and strip club visits. Prosecutors said McKernan swindled $57,000 from the Lower Gwynedd Little League, part of a larger scheme involving clients totaling $1.75 million. He has repaid much of the money and apologized at his sentencing hearing earlier this month.
Local league president Jay Gelman said the case didn't have much of a financial impact this season, and that the league bounced back to have successful sponsorship and good registration numbers in 2011. They also had insurance to recover anything that wasn't returned.
Parents overall, were sympathetic, Gelman said. The league put in place stricter guidelines over finances, and turned to an outside accounting firm to oversee the books.
"It created a lot more work for the board," Gelman said. "It did cost us money, in that we had to pay for an accountant we never paid for before."
School Embezzlement Investigation in Oklahoma
FROM KTUL.COM -
The Inola School District is investigating some missing lunch money.
The Superintendent says their lunch records are being audited.
Dr. Kent Holbrook estimates the amount of money missing is less than $25,000.
The audit is expected to be complete by Friday.
The Superintendent would not comment on a suspect, but the results of the audit will be turned over to the Inola Police Department and District Attorney's office.
The Inola School District is investigating some missing lunch money.
The Superintendent says their lunch records are being audited.
Dr. Kent Holbrook estimates the amount of money missing is less than $25,000.
The audit is expected to be complete by Friday.
The Superintendent would not comment on a suspect, but the results of the audit will be turned over to the Inola Police Department and District Attorney's office.
Tuesday, June 28, 2011
Audit: $1 million skimmed at North Carolina Central University
FROM ABCLOCAL.COM
The North Carolina Office of The State Auditor released a report Tuesday that says the former executive director of a minority program headquartered at NC Central University diverted $1 million to a checking account for payments to herself and others.
The program called the University Consortium was created in 1999 as a partnership between the North Carolina Department of Public Instruction and 12 North Carolina historically minority institutions of higher education. It was intended to work on strategies to close the minority achievement gap in North Carolina with an emphasis on students from kindergarten through twelfth grade.
The auditor's report says the General Assembly began funding in fiscal year 2001 and the Consortium received $3,586,400 in state appropriations through fiscal year 2010. It also got grants from private organizations, federal agencies, and state agencies.
In a news release in April, 2010, NC Central Chancellor Charlie Nelms said the program had taken in a total of about $13 million and he was asking for an outside investigation of alleged embezzlement by a former employee.
While the auditor's report does not name the former executive director of the Consortium, ABC11 has learned she is Nan Coleman. The report says she and former NCCU Provost Dr. Beverly Washington Jones set up the Consortium as a separate entity from the school.
"As a result, the former Provost and former Executive Director did not receive proper oversight from the University, the Foundation, or the Advisory Board," says the audit.
"In April 2004, the former Executive Director opened an unauthorized, undisclosed bank account in the University Consortium’s name," says the report.
"The former Executive Director had sole control over the undisclosed bank account and diverted over $1,000,000 to the undisclosed bank account in a skimming scheme over a six year period," says the report. "From 2004 through 2009, the former Executive Director made payments to herself and other University Consortium staff and contractors directly from the diverted funds. The former Executive Director received over $287,000 and the former Provost received nearly $62,000 from the diverted funds."
In a statement after the audit was made public Tuesday, Chancellor Nelms said he agrees with its findings and says he has "already taken decisive action to implement the necessary changes."
Nelms said the Consortium has been discontinued, the leaders responsible no longer work for NCCU, the suspect checking account has been frozen, and new policies have been put in place.
"A review of all NCCU accounts is under way to ensure their placement is consistent with the mission to serve the university," said Nelms in part.
Neither Coleman or Washington Jones have been charged criminally, but Nelms said "we will work with the Attorney General’s Office and the Durham County District Attorney to use all means available to recover any inappropriately expended funds."
"Personally and professionally, I am disappointed and dismayed regarding the alleged behavior of a few to the detriment of the university as a whole. However, I am confident that North Carolina Central University will emerge from this situation stronger and even more committed to excellence," said Nelms.
The North Carolina Office of The State Auditor released a report Tuesday that says the former executive director of a minority program headquartered at NC Central University diverted $1 million to a checking account for payments to herself and others.
The program called the University Consortium was created in 1999 as a partnership between the North Carolina Department of Public Instruction and 12 North Carolina historically minority institutions of higher education. It was intended to work on strategies to close the minority achievement gap in North Carolina with an emphasis on students from kindergarten through twelfth grade.
The auditor's report says the General Assembly began funding in fiscal year 2001 and the Consortium received $3,586,400 in state appropriations through fiscal year 2010. It also got grants from private organizations, federal agencies, and state agencies.
In a news release in April, 2010, NC Central Chancellor Charlie Nelms said the program had taken in a total of about $13 million and he was asking for an outside investigation of alleged embezzlement by a former employee.
While the auditor's report does not name the former executive director of the Consortium, ABC11 has learned she is Nan Coleman. The report says she and former NCCU Provost Dr. Beverly Washington Jones set up the Consortium as a separate entity from the school.
"As a result, the former Provost and former Executive Director did not receive proper oversight from the University, the Foundation, or the Advisory Board," says the audit.
"In April 2004, the former Executive Director opened an unauthorized, undisclosed bank account in the University Consortium’s name," says the report.
"The former Executive Director had sole control over the undisclosed bank account and diverted over $1,000,000 to the undisclosed bank account in a skimming scheme over a six year period," says the report. "From 2004 through 2009, the former Executive Director made payments to herself and other University Consortium staff and contractors directly from the diverted funds. The former Executive Director received over $287,000 and the former Provost received nearly $62,000 from the diverted funds."
In a statement after the audit was made public Tuesday, Chancellor Nelms said he agrees with its findings and says he has "already taken decisive action to implement the necessary changes."
Nelms said the Consortium has been discontinued, the leaders responsible no longer work for NCCU, the suspect checking account has been frozen, and new policies have been put in place.
"A review of all NCCU accounts is under way to ensure their placement is consistent with the mission to serve the university," said Nelms in part.
Neither Coleman or Washington Jones have been charged criminally, but Nelms said "we will work with the Attorney General’s Office and the Durham County District Attorney to use all means available to recover any inappropriately expended funds."
"Personally and professionally, I am disappointed and dismayed regarding the alleged behavior of a few to the detriment of the university as a whole. However, I am confident that North Carolina Central University will emerge from this situation stronger and even more committed to excellence," said Nelms.
Sunday, June 26, 2011
California school district shirks its duty
FROM REDDING.COM-
Just when you thought the Redding School District's reputation for mismanagement couldn't grow any worse, it surprises everyone in town and tops itself.
Last summer, Sycamore Elementary School librarian Wannel Stolz was arrested on felony embezzlement charges alleging theft from the parent-teacher club and the school itself. That would have been a disturbing allegation on its own, but what really piled the logs on the fire was that Stolz's husband, Rein Stolz, was the president of the school board at the time. (He quickly resigned.) Further, there were credible allegations that those who'd tried to blow the whistle on Stolz, including Sycamore's principal, faced retaliation.
What followed was an embarrassing collective denial of responsibility when the district badly needed leadership willing to clean up the mess. And the abdication continues nearly a year later. Last week the board took steps to allow Wannel Stolz — whose trial is scheduled for this summer — to return to work and in the process force the layoff of another school librarian with less seniority.
Cindy Trujillo, the district's human-resources director, wouldn't comment on the case in detail, citing personnel privacy, but did point out that the district cannot fire an employee simply because of a criminal accusation. Even a conviction, at least on this charge, wouldn't be grounds for automatic dismissal.
It is famously difficult for schools to fire employees for cause, but if there were ever case that demanded taking steps toward doing so, this is one. Stolz isn't accused of off-hours misconduct that didn't affect her school, but of directly abusing her position to steal on the job.
Is Stolz presumed innocent? Of course. And it is ultimately a jury's job to weigh whether the charges are proven beyond a reasonable doubt.
But in the meantime, the police found enough evidence to make an arrest. The district attorney found enough evidence to file charges. The judge found enough evidence to hold the case over for trial. There is a substanial body of evidence of wrongdoing. For district administrators to ignore all that is simply a dereliction of their duty to students, parents and taxpayers.
Trujillo last week declined to comment on whether the district had launched its own, independent investigation, but she did say that "the public does not have access to law enforcement's investigative files." That's incorrect. The Shasta County district attorney's office filed charges nearly a year ago, and the police reports and other documents that underlie the criminal charges are public. The district has abundant information on which to base its own decisions — or would if anyone cared to exend the strenuous effort of taking a drive to the courthouse.
The California Education Code states that employees may be dismissed or disciplined for "unprofessional conduct" and "dishonesty," among other job-related wrongdoing. If this case doesn't present strong enough evidence for the district to take action, what would?
The district is subject to strict and complex laws and might not be in a position to fire Stolz. Fine. At the very least, anyone facing felony charges for on-the-job conduct should remain on unpaid leave until the courts render a verdict. (Last summer, Stolz took a voluntary leave of absence, which is ending.)
The Redding School District hired a new superintendent in April to replace Diane Kempley, who is retiring. The refreshed leadership can't come soon enough.
And it's hard not to draw a larger political lesson here. Down in Sacramento, the heart of the feud over the state budget is that Republicans refuse to budge one inch on allowing new taxes or even a vote on them without various reforms. They won't throw more money at a broken government, or so they argue.
Whether the heart of Redding School District's troubles is the system or the people running it, when schools are pink-slipping good employees to make room on the payroll for accused felons, we're dealing with a bureaucracy grown inept to the point of corruption. More money can't fix that.
Just when you thought the Redding School District's reputation for mismanagement couldn't grow any worse, it surprises everyone in town and tops itself.
Last summer, Sycamore Elementary School librarian Wannel Stolz was arrested on felony embezzlement charges alleging theft from the parent-teacher club and the school itself. That would have been a disturbing allegation on its own, but what really piled the logs on the fire was that Stolz's husband, Rein Stolz, was the president of the school board at the time. (He quickly resigned.) Further, there were credible allegations that those who'd tried to blow the whistle on Stolz, including Sycamore's principal, faced retaliation.
What followed was an embarrassing collective denial of responsibility when the district badly needed leadership willing to clean up the mess. And the abdication continues nearly a year later. Last week the board took steps to allow Wannel Stolz — whose trial is scheduled for this summer — to return to work and in the process force the layoff of another school librarian with less seniority.
Cindy Trujillo, the district's human-resources director, wouldn't comment on the case in detail, citing personnel privacy, but did point out that the district cannot fire an employee simply because of a criminal accusation. Even a conviction, at least on this charge, wouldn't be grounds for automatic dismissal.
It is famously difficult for schools to fire employees for cause, but if there were ever case that demanded taking steps toward doing so, this is one. Stolz isn't accused of off-hours misconduct that didn't affect her school, but of directly abusing her position to steal on the job.
Is Stolz presumed innocent? Of course. And it is ultimately a jury's job to weigh whether the charges are proven beyond a reasonable doubt.
But in the meantime, the police found enough evidence to make an arrest. The district attorney found enough evidence to file charges. The judge found enough evidence to hold the case over for trial. There is a substanial body of evidence of wrongdoing. For district administrators to ignore all that is simply a dereliction of their duty to students, parents and taxpayers.
Trujillo last week declined to comment on whether the district had launched its own, independent investigation, but she did say that "the public does not have access to law enforcement's investigative files." That's incorrect. The Shasta County district attorney's office filed charges nearly a year ago, and the police reports and other documents that underlie the criminal charges are public. The district has abundant information on which to base its own decisions — or would if anyone cared to exend the strenuous effort of taking a drive to the courthouse.
The California Education Code states that employees may be dismissed or disciplined for "unprofessional conduct" and "dishonesty," among other job-related wrongdoing. If this case doesn't present strong enough evidence for the district to take action, what would?
The district is subject to strict and complex laws and might not be in a position to fire Stolz. Fine. At the very least, anyone facing felony charges for on-the-job conduct should remain on unpaid leave until the courts render a verdict. (Last summer, Stolz took a voluntary leave of absence, which is ending.)
The Redding School District hired a new superintendent in April to replace Diane Kempley, who is retiring. The refreshed leadership can't come soon enough.
And it's hard not to draw a larger political lesson here. Down in Sacramento, the heart of the feud over the state budget is that Republicans refuse to budge one inch on allowing new taxes or even a vote on them without various reforms. They won't throw more money at a broken government, or so they argue.
Whether the heart of Redding School District's troubles is the system or the people running it, when schools are pink-slipping good employees to make room on the payroll for accused felons, we're dealing with a bureaucracy grown inept to the point of corruption. More money can't fix that.
LA Schools step up oversight of Charter Schools
The auditorium at the Los Angeles Unified school board was awash in varying shades of blue shirts at a recent meeting - sky blue belonged to parents from Crescendo Schools, while navy was worn by parents from ICEF Public Schools. Outside, another group of parents chanted and waved picket signs to "save ICEF schools."
Both groups donned their school colors and showed up for the same reason - to prevent their troubled charter schools from shutdown, a result of cheating on state tests at Crescendo and fiscal bungling at ICEF.
"Our kids are innocent," said Noami Neal, mother of a Crescendo third-grader. "It was not their fault, it was the adults."
It's been a rocky year for charters in Los Angeles Unified, which hosts the most charter schools of any district in the nation - 183 currently, with roughly another 20 slated to open in the fall. Besides financial mismanagement and the cheating scandal, a principal at another charter was sent to prison for embezzlement and another school was closed for a poor academic record.
The run of problems has forced the district to step up oversight and take a tougher stance on the publicly funded, independent schools.
"This has been a year of reflection of how we can prevent some of these things from happening," said Parker Hudnut, who headed LAUSD's innovation and charter schools division until leaving this month to take the reins at ICEF, which stands for Inner City Education Foundation.
The district sent a clear message of its new posture when it shuttered Cornerstone Prep School for abysmal student achievement earlier this year, the first closure due to academic performance.
Although the vast majority of charters operate successfully, the missteps at a handful of LAUSD schools during the past year illustrate how the autonomy at the core of charter philosophy - that freedom from district bureaucracy allows for greater innovation and higher achievement - can sometimes trip them up.
"Flexibility is the tradeoff for accountability," said Jeanne Allen, president of the Center for Education Reform.
The key is catching problems before schools derail. About 12 percent of charters have closed since 1992, according to a 2009 study by Allen's organization.
Regulations governing charters differ among states. In the District of Columbia, for example, a separate school board authorizes charters and monitors them. In New York, an independent institute at the State University of New York has the responsibility, while the mayor's office holds that duty in Indianapolis.
In California, which has 900 charters - the most of any state in the nation, the local school district is responsible for authorizing and overseeing charters. That can be problematic because charters are often viewed as rivals to traditional schools.
"School districts don't want charters to exist and they're in charge of overseeing them," said Greg Richmond, executive director of the National Association of Charter School Authorizers, which represents charter regulators. "That just sets up constant problems. Charters accuse districts of picking on them and fight everything they do."
Advocates of the alternative schools say districts are hostile to the point of flouting laws that allow charters to use district facilities, such as classrooms and playing fields. The state also does not allow charters to access the same financing mechanisms as districts.
"There's plenty of oversight," said Caprice Young, former chief executive of ICEF brought in last fall to right listing finances and former executive director of the California Charter Schools Association. "The problem is the state and districts throw barriers in the way."
Still, Young suggested that if LAUSD had been paying closer attention to ICEF's required quarterly financial statements, the 15-school organization may not have ended up in such a deep financial pit. ICEF, which is widely hailed for sending more than 90 percent of its inner-city students to college, was saved by philanthropists and is merging with another management organization.
Supervising charters involves poring over audits and financial statements, as well as reviewing test scores and other measures of achievement. Financial mismanagement accounts for about 40 percent of closures. Experts say that's because most charters are launched by educators, not accountants.
LAUSD has 20 staffers supervising charters. After the ICEF fiasco, Hudnut said the office has been reorganized to form four teams of three people with each team responsible for overseeing about 60 schools, accounting for future growth.
To help plow through slews of financial reports, the office is contracting outside accountants to scrutinize the statements to pinpoint trouble spots, leaving in-house accountants to follow up.
The additional scrutiny is designed to ferret out everything from overspending to malfeasance, which was the case at another LAUSD charter, New Academy Canoga Park in the San Fernando Valley, where the school's board alerted district officials to possible wrongdoing.
A subsequent district audit found $3 million unaccounted for from 2007 to 2009. Principal Edward Fiszer was sentenced to five years in prison last December after pleading guilty to embezzling $1.4 million to play the stock market. The school was allowed to remain open after adopting a series of financial safeguards.
Some problems are difficult to detect. At Crescendo Schools last year, the then-executive director instructed principals at six schools to show teachers state standardized tests, give students quizzes based on test questions and deny seeing the test if asked. Two teachers called the district to report the cheating, which led the state to invalidate the schools' 2010 scores.
After moving to shut down the six schools, the district pulled back after the responsible administrators were removed and other reforms put in place.
Experts note that traditional schools run into misconduct and other problems, too, but say charters are held more accountable.
"Bad charter schools are easier to shut down," said Robin Lake, associate director of the University of Washington's Center on Reinventing Public Education. "With bad traditional schools, it's just assumed they'll go on into perpetuity."
Still, closures are politically difficult with school boards and other authorizers facing hordes of anxious parents pleading to keep their school open.
"It's not particularly easy. Closure is a very blunt instrument," said Hudnut. "These are parents who believe in their students. It's very, very personal for them, but they often have little idea of what we're dealing with."
Crescendo parents, who erupted in loud applause and cries of "amen" when district Superintendent John Deasy recently announced that the schools would most likely remain open, saw the test cheating as a separate issue from their kids' education.
"It was wrong," said parent Neal of the cheating. "But my daughter is learning the piano. She has dance and singing, all kinds of things. I was really hoping the school would stay open. We need that school."
Both groups donned their school colors and showed up for the same reason - to prevent their troubled charter schools from shutdown, a result of cheating on state tests at Crescendo and fiscal bungling at ICEF.
"Our kids are innocent," said Noami Neal, mother of a Crescendo third-grader. "It was not their fault, it was the adults."
It's been a rocky year for charters in Los Angeles Unified, which hosts the most charter schools of any district in the nation - 183 currently, with roughly another 20 slated to open in the fall. Besides financial mismanagement and the cheating scandal, a principal at another charter was sent to prison for embezzlement and another school was closed for a poor academic record.
The run of problems has forced the district to step up oversight and take a tougher stance on the publicly funded, independent schools.
"This has been a year of reflection of how we can prevent some of these things from happening," said Parker Hudnut, who headed LAUSD's innovation and charter schools division until leaving this month to take the reins at ICEF, which stands for Inner City Education Foundation.
The district sent a clear message of its new posture when it shuttered Cornerstone Prep School for abysmal student achievement earlier this year, the first closure due to academic performance.
Although the vast majority of charters operate successfully, the missteps at a handful of LAUSD schools during the past year illustrate how the autonomy at the core of charter philosophy - that freedom from district bureaucracy allows for greater innovation and higher achievement - can sometimes trip them up.
"Flexibility is the tradeoff for accountability," said Jeanne Allen, president of the Center for Education Reform.
The key is catching problems before schools derail. About 12 percent of charters have closed since 1992, according to a 2009 study by Allen's organization.
Regulations governing charters differ among states. In the District of Columbia, for example, a separate school board authorizes charters and monitors them. In New York, an independent institute at the State University of New York has the responsibility, while the mayor's office holds that duty in Indianapolis.
In California, which has 900 charters - the most of any state in the nation, the local school district is responsible for authorizing and overseeing charters. That can be problematic because charters are often viewed as rivals to traditional schools.
"School districts don't want charters to exist and they're in charge of overseeing them," said Greg Richmond, executive director of the National Association of Charter School Authorizers, which represents charter regulators. "That just sets up constant problems. Charters accuse districts of picking on them and fight everything they do."
Advocates of the alternative schools say districts are hostile to the point of flouting laws that allow charters to use district facilities, such as classrooms and playing fields. The state also does not allow charters to access the same financing mechanisms as districts.
"There's plenty of oversight," said Caprice Young, former chief executive of ICEF brought in last fall to right listing finances and former executive director of the California Charter Schools Association. "The problem is the state and districts throw barriers in the way."
Still, Young suggested that if LAUSD had been paying closer attention to ICEF's required quarterly financial statements, the 15-school organization may not have ended up in such a deep financial pit. ICEF, which is widely hailed for sending more than 90 percent of its inner-city students to college, was saved by philanthropists and is merging with another management organization.
Supervising charters involves poring over audits and financial statements, as well as reviewing test scores and other measures of achievement. Financial mismanagement accounts for about 40 percent of closures. Experts say that's because most charters are launched by educators, not accountants.
LAUSD has 20 staffers supervising charters. After the ICEF fiasco, Hudnut said the office has been reorganized to form four teams of three people with each team responsible for overseeing about 60 schools, accounting for future growth.
To help plow through slews of financial reports, the office is contracting outside accountants to scrutinize the statements to pinpoint trouble spots, leaving in-house accountants to follow up.
The additional scrutiny is designed to ferret out everything from overspending to malfeasance, which was the case at another LAUSD charter, New Academy Canoga Park in the San Fernando Valley, where the school's board alerted district officials to possible wrongdoing.
A subsequent district audit found $3 million unaccounted for from 2007 to 2009. Principal Edward Fiszer was sentenced to five years in prison last December after pleading guilty to embezzling $1.4 million to play the stock market. The school was allowed to remain open after adopting a series of financial safeguards.
Some problems are difficult to detect. At Crescendo Schools last year, the then-executive director instructed principals at six schools to show teachers state standardized tests, give students quizzes based on test questions and deny seeing the test if asked. Two teachers called the district to report the cheating, which led the state to invalidate the schools' 2010 scores.
After moving to shut down the six schools, the district pulled back after the responsible administrators were removed and other reforms put in place.
Experts note that traditional schools run into misconduct and other problems, too, but say charters are held more accountable.
"Bad charter schools are easier to shut down," said Robin Lake, associate director of the University of Washington's Center on Reinventing Public Education. "With bad traditional schools, it's just assumed they'll go on into perpetuity."
Still, closures are politically difficult with school boards and other authorizers facing hordes of anxious parents pleading to keep their school open.
"It's not particularly easy. Closure is a very blunt instrument," said Hudnut. "These are parents who believe in their students. It's very, very personal for them, but they often have little idea of what we're dealing with."
Crescendo parents, who erupted in loud applause and cries of "amen" when district Superintendent John Deasy recently announced that the schools would most likely remain open, saw the test cheating as a separate issue from their kids' education.
"It was wrong," said parent Neal of the cheating. "But my daughter is learning the piano. She has dance and singing, all kinds of things. I was really hoping the school would stay open. We need that school."
Friday, June 24, 2011
Former Boulder education charity bookkeeper Diana Lewis sentenced to six years for embezzlement in Colorado
FROM DAILYCAMERA.COM -
The bookkeeper who stole almost $180,000 from an education charity in Boulder was sentenced to six years in prison on Friday.
Diana Lynn Lewis, 44, will also serve three years of mandatory parole for one count of felony theft after a sentencing hearing that featured emotional testimony from the CEO of Impact on Education, the nonprofit that Lewis embezzled from.
In her ruling, Judge Gwyneth Whalen cited the amount of money and the length of time over which the embezzling occurred as reasons for the sentence.
"In times of budget cuts to education, the district relies even more on the goodwill of the community," Whalen said. "That goodwill has been irreparably damaged."
Whalen also noted Lewis' previous conviction for stealing from an Alzheimer's facility meant she had to overlook the numerous letters of support from family and even some old work supervisors who said Lewis would "give the shirt off her back to anyone."
Lewis forged several checks a year to herself and family members worth approximately $178,000 from 2004 to 2010. She would then cut and paste bank statements and input false information in the organization's online accounting system to cover her tracks.
The CEO of Impact on Education, Fran Ryan, told the judge that they suspect Lewis stole even more money from the nonprofit, including silent auction items and even coins from a lemonade stand that students had donated.
"I worked three months of additional time to clean up this mess," said Ryan, who added that she has already had donors tell her they were no longer giving money to Impact on Education because of the incident. "I've cried about this. I'm crying now. I haven't seen any tears from Mrs. Lewis."
Lewis did shed tears while apologizing in brief remarks to the organization, as did her family members in attendance when the sentence was announced.
"She worked for Impact on Education, and the impact on education she chose to have was to put $178,000 in her own pocket," Assistant District Attorney Christopher Zenisek said at the hearing. "She had her opportunity to make good, and she failed."
The District Attorney's Office had been seeking eight years, but Zenisek said he felt the sentence was "appropriate."
The bookkeeper who stole almost $180,000 from an education charity in Boulder was sentenced to six years in prison on Friday.
Diana Lynn Lewis, 44, will also serve three years of mandatory parole for one count of felony theft after a sentencing hearing that featured emotional testimony from the CEO of Impact on Education, the nonprofit that Lewis embezzled from.
In her ruling, Judge Gwyneth Whalen cited the amount of money and the length of time over which the embezzling occurred as reasons for the sentence.
"In times of budget cuts to education, the district relies even more on the goodwill of the community," Whalen said. "That goodwill has been irreparably damaged."
Whalen also noted Lewis' previous conviction for stealing from an Alzheimer's facility meant she had to overlook the numerous letters of support from family and even some old work supervisors who said Lewis would "give the shirt off her back to anyone."
Lewis forged several checks a year to herself and family members worth approximately $178,000 from 2004 to 2010. She would then cut and paste bank statements and input false information in the organization's online accounting system to cover her tracks.
The CEO of Impact on Education, Fran Ryan, told the judge that they suspect Lewis stole even more money from the nonprofit, including silent auction items and even coins from a lemonade stand that students had donated.
"I worked three months of additional time to clean up this mess," said Ryan, who added that she has already had donors tell her they were no longer giving money to Impact on Education because of the incident. "I've cried about this. I'm crying now. I haven't seen any tears from Mrs. Lewis."
Lewis did shed tears while apologizing in brief remarks to the organization, as did her family members in attendance when the sentence was announced.
"She worked for Impact on Education, and the impact on education she chose to have was to put $178,000 in her own pocket," Assistant District Attorney Christopher Zenisek said at the hearing. "She had her opportunity to make good, and she failed."
The District Attorney's Office had been seeking eight years, but Zenisek said he felt the sentence was "appropriate."
Thursday, June 23, 2011
School Official Ordered to Repay Embezzled Funds in California
From: parklabreanewsbeverlypress.com/
A former Los Angeles Unified School District (LAUSD) administrative assistant who admitted to misappropriating public funds from Halldale Elementary School and the school’s PTA was ordered to pay more than $116,000 in restitution, the Los Angeles County District Attorney’s office has announced.
Deputy District Attorney Gary Nielsen, with the Public Integrity Division, said Lisa Ann Castro, 47, was ordered to pay $93,400 to the LAUSD, and $23,000 to Halldale Elementary School.
Castro pleaded guilty on Feb. 3 to one count of misappropriation of public funds, and was sentenced to two years in state prison. In 2005, shortly after being assigned to the school, Castro was given responsibility for two school accounts and was also made treasurer of the PTA and given access to its checking account. She pleaded guilty to stealing from all three accounts between June 2005 and September 2009, and taking the money for personal use. As part of the plea negotiation, prosecutors dismissed three counts of embezzlement and four counts of forging signatures on more than 100 checks, using the names of two different principals and two PTA officials.
A former Los Angeles Unified School District (LAUSD) administrative assistant who admitted to misappropriating public funds from Halldale Elementary School and the school’s PTA was ordered to pay more than $116,000 in restitution, the Los Angeles County District Attorney’s office has announced.
Deputy District Attorney Gary Nielsen, with the Public Integrity Division, said Lisa Ann Castro, 47, was ordered to pay $93,400 to the LAUSD, and $23,000 to Halldale Elementary School.
Castro pleaded guilty on Feb. 3 to one count of misappropriation of public funds, and was sentenced to two years in state prison. In 2005, shortly after being assigned to the school, Castro was given responsibility for two school accounts and was also made treasurer of the PTA and given access to its checking account. She pleaded guilty to stealing from all three accounts between June 2005 and September 2009, and taking the money for personal use. As part of the plea negotiation, prosecutors dismissed three counts of embezzlement and four counts of forging signatures on more than 100 checks, using the names of two different principals and two PTA officials.
Man sentenced for embezzlement in Georgia
FROM CHRONICLE.AUGUSTA.COM
For two years, Bernard Walker used fraudulently obtained checks to buy cars -- a Jaguar, a Cadillac, an Audi, a BMW -- then pocketed the extra cash he got back.
He covered his trail in different ways, including writing himself a check out of a church's bank account, but he couldn't escape scrutiny indefinitely.
On Thursday, Walker was sentenced to 33 months in prison, plus three years of supervised release, for embezzling money intended to pay for the meals and snacks of low-income children attending day care centers in 11 Georgia counties. He had been indicted on the federal charges Oct. 14.
Walker had access to the money as the nutrition specialist for the Central Savannah River Area Economic Opportunity Authority, which has headquarters on Greene Street. He worked at the organization for more than 10 years.
"We had no reason to suspect (he was embezzling money)," said Gloria Lewis, the executive director. "He built up a trust as he did his work."
Walker pleaded guilty through a plea bargain three months after his indictment.
"Stealing taxpayers' money that was allocated to buying meals for our children is reprehensible," U.S. Attorney Edward J. Tarver said.
The indictment shows Walker obtained the authority's checks by submitting false invoices from nonexistent vendors. He then used those checks to purchase six vehicles at Top Quality Auto in Waynesboro, Ga., including luxury cars, a Ford Mustang and a Ford Expedition.
In those instances, he gave the dealership checks in excess of the purchasing price and pocketed a check in return. The largest amount he received back was $10,196.44, the indictment showed.
He also bought a $475 rug at Goldberg's Furniture with a $4,634 check and got $4,158 back. In a separate incident, Walker deposited a $4,634 authority check into the bank account of Thankful Baptist Church in Waynesboro, then wrote a check to himself from the church's bank account for $4,632, the indictment stated.
Lewis said new safeguards have been put into place to prevent future theft, but she declined to give specifics. She added that there are policies in place that allow employees to report suspicious behavior without the fear of retaliation.
"We put a lot of trust in (Walker) as an employee, and he just didn't follow through," Lewis said.
For two years, Bernard Walker used fraudulently obtained checks to buy cars -- a Jaguar, a Cadillac, an Audi, a BMW -- then pocketed the extra cash he got back.
He covered his trail in different ways, including writing himself a check out of a church's bank account, but he couldn't escape scrutiny indefinitely.
On Thursday, Walker was sentenced to 33 months in prison, plus three years of supervised release, for embezzling money intended to pay for the meals and snacks of low-income children attending day care centers in 11 Georgia counties. He had been indicted on the federal charges Oct. 14.
Walker had access to the money as the nutrition specialist for the Central Savannah River Area Economic Opportunity Authority, which has headquarters on Greene Street. He worked at the organization for more than 10 years.
"We had no reason to suspect (he was embezzling money)," said Gloria Lewis, the executive director. "He built up a trust as he did his work."
Walker pleaded guilty through a plea bargain three months after his indictment.
"Stealing taxpayers' money that was allocated to buying meals for our children is reprehensible," U.S. Attorney Edward J. Tarver said.
The indictment shows Walker obtained the authority's checks by submitting false invoices from nonexistent vendors. He then used those checks to purchase six vehicles at Top Quality Auto in Waynesboro, Ga., including luxury cars, a Ford Mustang and a Ford Expedition.
In those instances, he gave the dealership checks in excess of the purchasing price and pocketed a check in return. The largest amount he received back was $10,196.44, the indictment showed.
He also bought a $475 rug at Goldberg's Furniture with a $4,634 check and got $4,158 back. In a separate incident, Walker deposited a $4,634 authority check into the bank account of Thankful Baptist Church in Waynesboro, then wrote a check to himself from the church's bank account for $4,632, the indictment stated.
Lewis said new safeguards have been put into place to prevent future theft, but she declined to give specifics. She added that there are policies in place that allow employees to report suspicious behavior without the fear of retaliation.
"We put a lot of trust in (Walker) as an employee, and he just didn't follow through," Lewis said.
Curfew for ex-school board official in Canada
FROM THE PROVINCE.COM -
A former Surrey School District associate superintendent who stole thousands of dollars from his employer was given a conditional sentence Monday in B.C. Provincial Court.
Robert Chadwick, 63, pleaded guilty on June 10 to breach of trust by a public officer. Chadwick and his wife Barbara, who was his administrative assistant, were also charged with fraud and theft over $5,000, but those charges were stayed.
According to an agreed-upon statement of facts, between July 2001 and June 2003 Robert Chadwick, who was an associate superintendent for six years, was responsible for the financial management of a contract the school district had with San Diego State University for use of district facilities.
Chadwick put payments totalling $416,000 into an external account he set up. Of that amount, $25,000 went to the school district. Most of the remaining money was used legitimately, but almost $44,000 was not.
The irregularities were discovered after a 2006 internal audit and a hearing was ordered, but Chadwick and his wife resigned before the hearing took place. They were criminally charged in July 2010.
In 2009, the district filed a civil suit against the couple, claiming they transferred more than $167,689.32 of district funds into a separate, unaudited account.
The Chadwicks settled the civil suit out of court in March, agreeing to pay the school board $78,000 to cover the $44,000 they took and costs incurred by the district.
In his decision, Judge James Bahen said an 18-month conditional sentence was appropriate partly because Chadwick has no prior criminal record and is not a danger to the community, nor is he a risk to reoffend.
Chadwick has paid the full amount owed in the civil court decision, pleaded guilty and, according to Bahen, expressed remorse.
Bahen said the offence is "clearly inconsistent with [Chadwick's] previous career and personal achievements."
The conditional sentence includes a curfew from 8 p.m. to 6 a.m. for the first four months.
A former Surrey School District associate superintendent who stole thousands of dollars from his employer was given a conditional sentence Monday in B.C. Provincial Court.
Robert Chadwick, 63, pleaded guilty on June 10 to breach of trust by a public officer. Chadwick and his wife Barbara, who was his administrative assistant, were also charged with fraud and theft over $5,000, but those charges were stayed.
According to an agreed-upon statement of facts, between July 2001 and June 2003 Robert Chadwick, who was an associate superintendent for six years, was responsible for the financial management of a contract the school district had with San Diego State University for use of district facilities.
Chadwick put payments totalling $416,000 into an external account he set up. Of that amount, $25,000 went to the school district. Most of the remaining money was used legitimately, but almost $44,000 was not.
The irregularities were discovered after a 2006 internal audit and a hearing was ordered, but Chadwick and his wife resigned before the hearing took place. They were criminally charged in July 2010.
In 2009, the district filed a civil suit against the couple, claiming they transferred more than $167,689.32 of district funds into a separate, unaudited account.
The Chadwicks settled the civil suit out of court in March, agreeing to pay the school board $78,000 to cover the $44,000 they took and costs incurred by the district.
In his decision, Judge James Bahen said an 18-month conditional sentence was appropriate partly because Chadwick has no prior criminal record and is not a danger to the community, nor is he a risk to reoffend.
Chadwick has paid the full amount owed in the civil court decision, pleaded guilty and, according to Bahen, expressed remorse.
Bahen said the offence is "clearly inconsistent with [Chadwick's] previous career and personal achievements."
The conditional sentence includes a curfew from 8 p.m. to 6 a.m. for the first four months.
PTAs looking at financial controls
FROM STARNEWSONLINE.COM-
Embezzlement charges directed against two area women active in parent support organizations that strive to better education underscore the financial vulnerability of volunteer groups when safeguards are lacking or neglected, experts said.
Deputies in New Hanover and Brunswick counties drew warrants earlier this month, accusing the women affiliated with the Sunset Park Elementary PTA and the Lincoln Elementary PTO with stealing thousands of dollars from their groups. Though filed within a day of each other, authorities say the cases are unrelated.
The allegations raised questions about the strengthening of financial protections in an era where experts have noted an anecdotal rise in white-collar crimes. Those interviewed in the past week believe the upswing is at least partially attributable to economic hardship.
Authorities charged Dana Leigh Brooks, 38, with 12 counts of embezzlement over accusations she stole more than $5,000 from Lincoln’s PTO between February and June. She came to the attention of authorities after the group received multiple complaints from parents concerning a recent fundraiser where ordered items were never delivered. Sgt. April Stanley, a spokeswoman for the Brunswick County Sheriff’s Office, said that when the funds were examined, it was discovered the goods were never paid for and there was a discrepancy in the finances.
A day earlier, deputies charged April Ann Powell, who resigned as president of Sunset Park’s PTA in December, with one count of embezzlement after evidence suggested she allegedly used the group’s money to pay off her personal debts during the latter part of 2010. Cpl. Jerry Brewer, a spokesman for the New Hanover County Sheriff’s Office, said he could not confirm the precise amount involved but did say it was thousands. Contacted last week via phone, Powell, 34, declined to comment on the case.
Since news about the alleged embezzlement schemes emerged earlier this month, questions have swirled over whether financial safeguards are strong enough.
Two officials with the New Hanover County Council of PTAs, which supports the network of local groups, said the system in place is adequately designed to provide financial oversight. The issue, they said, was PTA groups have been allowed to amend their bylaws, and there exists no authority to ensure that policies and procedures are being followed correctly. Part of that is about to change, though.
Council President Denise Szaloky said the Sunset Park episode has prompted other groups to evaluate their policies and strengthen their financial protections. Soon, she said, all the groups in North Carolina are expected to adopt uniform bylaws to increase financial oversight and bolster other controls–a move proposed last year.
“If you follow your bylaws … there are procedures in place that would not allow this to happen,” said Gina Baran, the council’s treasurer. “This is something that should not occur.” In addition to the obvious fiscal impacts, exposure to theft can make it more difficult for donation-reliant nonprofits like parent-teacher associations to raise money.
“It makes your next fundraiser that much more difficult because people question the seriousness of the group in protecting its money,” said Tim Sullivan, founder and president of PTO Today, which helps parents form support organizations at local schools. “It stinks when you’re putting sweat and energy into a good cause and suddenly people are talking negatively about it.”
While PTAs and PTOs differ in their affiliations and organizational structure, both work to better education by providing everything from classroom supplies to playground equipment. Though affiliated with a certain school, the groups function independently and rely on private donations. Nevertheless, with government belt-tightening obliging school districts to pare back their budgets, schools have grown more reliant on parent support groups to sustain traditional education levels.
Crime experts agree that fraud is not unique to PTAs and PTOs. Indeed, news reports from around the country show the prospect of volunteers diverting money for personal gain is nothing new. And though many say the proportion of nonprofits that actually fall victim is miniscule, white-collar crimes have certainly increased in scope and frequency during the economic downturn.
In Bedford, Va., for example, authorities charged three people in 2009 – including the fire chief – with looting more than $150,000 from a volunteer fire company. In another case, a volunteer and two former employees at a catholic church in Danville, Calif. were arrested last year on suspicion of embezzling nearly $600,000 from the religious institution, according to Associated Press reports.
While the problem might be relatively small compared to the number of organizations in existence – one expert noted as many as 1.5 million nonprofits nationwide – some insiders contend that press coverage makes it appear worse and often taints the industry’s reputation.
James Martinez, a spokesman for the National PTA, said the advocacy group does not track the number of times these kinds of allegations arise but does monitor media reports and believes only a “handful” are ever exposed.
“Parents groups in general do great things but unfortunately, this happens, but it doesn’t happen all the time,” he said, speaking on the two recent cases in Southeastern North Carolina. “Corruption, which is what it is, happens on every level of any system around the world.”
Embezzlement charges directed against two area women active in parent support organizations that strive to better education underscore the financial vulnerability of volunteer groups when safeguards are lacking or neglected, experts said.
Deputies in New Hanover and Brunswick counties drew warrants earlier this month, accusing the women affiliated with the Sunset Park Elementary PTA and the Lincoln Elementary PTO with stealing thousands of dollars from their groups. Though filed within a day of each other, authorities say the cases are unrelated.
The allegations raised questions about the strengthening of financial protections in an era where experts have noted an anecdotal rise in white-collar crimes. Those interviewed in the past week believe the upswing is at least partially attributable to economic hardship.
Authorities charged Dana Leigh Brooks, 38, with 12 counts of embezzlement over accusations she stole more than $5,000 from Lincoln’s PTO between February and June. She came to the attention of authorities after the group received multiple complaints from parents concerning a recent fundraiser where ordered items were never delivered. Sgt. April Stanley, a spokeswoman for the Brunswick County Sheriff’s Office, said that when the funds were examined, it was discovered the goods were never paid for and there was a discrepancy in the finances.
A day earlier, deputies charged April Ann Powell, who resigned as president of Sunset Park’s PTA in December, with one count of embezzlement after evidence suggested she allegedly used the group’s money to pay off her personal debts during the latter part of 2010. Cpl. Jerry Brewer, a spokesman for the New Hanover County Sheriff’s Office, said he could not confirm the precise amount involved but did say it was thousands. Contacted last week via phone, Powell, 34, declined to comment on the case.
Since news about the alleged embezzlement schemes emerged earlier this month, questions have swirled over whether financial safeguards are strong enough.
Two officials with the New Hanover County Council of PTAs, which supports the network of local groups, said the system in place is adequately designed to provide financial oversight. The issue, they said, was PTA groups have been allowed to amend their bylaws, and there exists no authority to ensure that policies and procedures are being followed correctly. Part of that is about to change, though.
Council President Denise Szaloky said the Sunset Park episode has prompted other groups to evaluate their policies and strengthen their financial protections. Soon, she said, all the groups in North Carolina are expected to adopt uniform bylaws to increase financial oversight and bolster other controls–a move proposed last year.
“If you follow your bylaws … there are procedures in place that would not allow this to happen,” said Gina Baran, the council’s treasurer. “This is something that should not occur.” In addition to the obvious fiscal impacts, exposure to theft can make it more difficult for donation-reliant nonprofits like parent-teacher associations to raise money.
“It makes your next fundraiser that much more difficult because people question the seriousness of the group in protecting its money,” said Tim Sullivan, founder and president of PTO Today, which helps parents form support organizations at local schools. “It stinks when you’re putting sweat and energy into a good cause and suddenly people are talking negatively about it.”
While PTAs and PTOs differ in their affiliations and organizational structure, both work to better education by providing everything from classroom supplies to playground equipment. Though affiliated with a certain school, the groups function independently and rely on private donations. Nevertheless, with government belt-tightening obliging school districts to pare back their budgets, schools have grown more reliant on parent support groups to sustain traditional education levels.
Crime experts agree that fraud is not unique to PTAs and PTOs. Indeed, news reports from around the country show the prospect of volunteers diverting money for personal gain is nothing new. And though many say the proportion of nonprofits that actually fall victim is miniscule, white-collar crimes have certainly increased in scope and frequency during the economic downturn.
In Bedford, Va., for example, authorities charged three people in 2009 – including the fire chief – with looting more than $150,000 from a volunteer fire company. In another case, a volunteer and two former employees at a catholic church in Danville, Calif. were arrested last year on suspicion of embezzling nearly $600,000 from the religious institution, according to Associated Press reports.
While the problem might be relatively small compared to the number of organizations in existence – one expert noted as many as 1.5 million nonprofits nationwide – some insiders contend that press coverage makes it appear worse and often taints the industry’s reputation.
James Martinez, a spokesman for the National PTA, said the advocacy group does not track the number of times these kinds of allegations arise but does monitor media reports and believes only a “handful” are ever exposed.
“Parents groups in general do great things but unfortunately, this happens, but it doesn’t happen all the time,” he said, speaking on the two recent cases in Southeastern North Carolina. “Corruption, which is what it is, happens on every level of any system around the world.”
The Relationship Between Embezzlement Cases And Gambling
FROM WSJM.COM-
A Saint Joseph man was sentenced to one year in jail this week for embezzling thousands of dollars from his church. 46 year old Jon Ruppel was also ordered to pay about 192 thousand dollars in restitution to Saint Peter's United Church of Christ, and serve five years of probation. According to the Herald Palladium, the judge indicated in court that Ruppel's crimes were in part due to a gambling problem and casino visits, which raises a question -- how many of the embezzlement cases we've seen lately are due to the same addiction? Patrick Witri, President of the Michigan Association on Problem Gambling, tells us that just having a casino nearby won't necessarily drive someone into that sort of compulsive behavior, in and of itself:
A Saint Joseph man was sentenced to one year in jail this week for embezzling thousands of dollars from his church. 46 year old Jon Ruppel was also ordered to pay about 192 thousand dollars in restitution to Saint Peter's United Church of Christ, and serve five years of probation. According to the Herald Palladium, the judge indicated in court that Ruppel's crimes were in part due to a gambling problem and casino visits, which raises a question -- how many of the embezzlement cases we've seen lately are due to the same addiction? Patrick Witri, President of the Michigan Association on Problem Gambling, tells us that just having a casino nearby won't necessarily drive someone into that sort of compulsive behavior, in and of itself:
Wednesday, June 15, 2011
Aug. 9 trial set for former school librarian in California
FROM REDDING.COM
An Aug. 9 trial date was confirmed Monday in Shasta County Superior Court for a Redding School District librarian accused of embezzling and stealing from a school parent club.
A settlement conference that afternoon for Wanell Stolz, 52, the wife of the school district's former board president, Rein Stolz, failed to resolve the case, but attorneys are continuing to seek a negotiated settlement.
Stolz, who has pleaded not guilty, is accused of stealing approximately $13,500 of cash and property from Sycamore School and the Parent Faculty Club at the school from 2004 to 2009.
Redding police have said that Stolz, arrested on Aug. 4 at her home, wrote more than 80 checks to herself and her husband from the club's account.
She also allegedly stole a digital camera, stacks of books and used the club's account to buy enough ink cartridges to print close to 3,000 pages on her homes computer, police have said.
Redding police arrested Stolz on Aug. 4 at her home on suspicion of theft and embezzlement, and her husband resigned from the school board later that month.
After her arrest, school district employees claimed Stolz received preferential treatment because her husband was president of the board, and Sycamore Principal Lana Rylee filed a claim against the district maintaining she suffered retaliation for giving Wanell Stolz a critical evaluation and reporting possible criminal activities to authorities.
The claim is a precursor to a lawsuit, but electronic Superior Court records show that a lawsuit has not been filed.
An Aug. 9 trial date was confirmed Monday in Shasta County Superior Court for a Redding School District librarian accused of embezzling and stealing from a school parent club.
A settlement conference that afternoon for Wanell Stolz, 52, the wife of the school district's former board president, Rein Stolz, failed to resolve the case, but attorneys are continuing to seek a negotiated settlement.
Stolz, who has pleaded not guilty, is accused of stealing approximately $13,500 of cash and property from Sycamore School and the Parent Faculty Club at the school from 2004 to 2009.
Redding police have said that Stolz, arrested on Aug. 4 at her home, wrote more than 80 checks to herself and her husband from the club's account.
She also allegedly stole a digital camera, stacks of books and used the club's account to buy enough ink cartridges to print close to 3,000 pages on her homes computer, police have said.
Redding police arrested Stolz on Aug. 4 at her home on suspicion of theft and embezzlement, and her husband resigned from the school board later that month.
After her arrest, school district employees claimed Stolz received preferential treatment because her husband was president of the board, and Sycamore Principal Lana Rylee filed a claim against the district maintaining she suffered retaliation for giving Wanell Stolz a critical evaluation and reporting possible criminal activities to authorities.
The claim is a precursor to a lawsuit, but electronic Superior Court records show that a lawsuit has not been filed.
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