So this purchasing manager in a Detroit area school district purchased goods for the district at inflated prices from a company he had an ownership interest. Then, at the end of the article, they talk about an earlier incident where school principal in the same district siphoned off $400,000 through the day care program for the district, and was sent to prison.
In addition, they mention: " Deldin said Chippewa Valley has implemented a number of new measures to reduce the district's exposure to theft including a fraud telephone hotline that employees or parents can report suspicious activity; the hiring of an independent auditor to regularly review accounting procedures; and performing credit checks on all new administrators."
Lake County doesn't currently have an internal auditor, but is in the process of hiring one. Also, Lake County does NOT have a hotline for people to report suspected fraud. Neither does the State of FL Education Dept.
Kinda makes you start to believe in better accounting controls and procedures, doesn't it?
vj
Ex-school official charged with fraud Chippewa Valley administrator accused of buying furniture for district at inflated prices By Mitch Hotts Macomb Daily Staff Writer Two years ago, James Edward Tague was considered a respected administrator in Chippewa Valley Schools and so good at purchasing school equipment that he was invited to speak before an audience of state school business officials. On Thursday, the 59-year-old Oakland County resident was accused by the U.S. Justice Department of fraud, charged with buying school furniture and supplies at inflated costs from a company with which he had personal involvement. "We are saying he used fraudulent practices through his employment with the school district," said Gina Balaya, a spokeswoman for the U.S. Attorney's Office in Detroit. Tague, who is expected to surrender to federal authorities in the next two weeks to face formal arraignment, could face up to 10 years in prison and a $250,000 fine if he is convicted on the charges. Tague, who lives with his wife and children in Independence Township, did not return phone calls for comment Thursday. His attorney, Neil Rockind, could not be reached. He was fired in February 2006 from his $109,000 position as executive director of support services for the Clinton Township-based school district. He was initially hired as a purchasing agent in 1998. School officials said Tague was terminated by the Board of Education when they learned he had violated the district's conflict of interest policy by awarding contracts for school equipment and furniture to a company he had an interest in. The total dollar amount of the alleged fraud could be in excess of $200,000, according to school and police officials. Chippewa Valley officials contacted Clinton Township police to report the incident. Local police called in the FBI and the Internal Revenue Service, as the federal government took control of the investigation. Superintendent Mark Deldin said school officials completely cooperated with investigators in the probe. "We work for the public and we are not about to hide anything, even if it is 'one of our own,' so to speak," Deldin said. "We have an outstanding reputation and the support of our community, which requires us to be completely up front with everyone when something like this happens." School board President Ken Pearl, in a prepared statement, said board members continue to monitor the situation and hope to recover money owed back to the school district. "We have been working closely with administration to adopt policies and procedures to insure this type of thing doesn't occur again," Pearl said. A review of Tague's personnel file by The Macomb Daily shows he had been praised by his supervisors as a "trusted and respected" administrator while at Chippewa Valley. He also had been invited to address the Michigan School Business Officials annual conferences due to his "expertise in purchasing school equipment," according to his file. Deldin said Chippewa Valley has implemented a number of new measures to reduce the district's exposure to theft including a fraud telephone hotline that employees or parents can report suspicious activity; the hiring of an independent auditor to regularly review accounting procedures; and performing credit checks on all new administrators. Tague becomes the second Chippewa Valley official accused by the U.S. Justice Department of wrongdoing.
Richard Zaranek, a former elementary school principal, admitted in
federal court that he took money and goods from the school's child care
program amounting to $400,000. He was ordered to serve 31 months in
prison.
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