Here is one of our continuing collection of articles on how many ways School Districts fail to prevent fraud and corruption.
This one is in Louisiana and the School Board Lost $8.6-million.
Favorite quotes:
"The five were named in an indictment charging them with defrauding the school system of $8.6 million for air-conditioning contracts over a four-year period. Federal investigators say the school district was charged for more expensive air-conditioning equipment than was installed, for equipment and installation in nonexistent rooms, for amounts in excess of the contract price and for replacing units that were functioning properly."
"Wilson and Lee are accused of overcharging and fraudulently billing the school system, while Johnston, Rhodes and Rowes are charged with falsely certifying the right equipment was installed and approving invoices for payment that included false information."
My new mantra is:
Professional "Educators" should be embarrassed over their profession's inability or unwillingness to implement well known financial and accounting controls to prevent these types of frauds and scams.
vj
January 6, 2009
Defendants plead not guilty to defrauding School Board of $8.6M
By Loresha Wilson
[email protected]
Five people who were indicted last month in connection with the Bossier schools maintenance department scam pleaded not guilty in federal court Monday.
Ark-La-Tex Air Repair Inc. owners Alan Lee, 53, and Garrett Wilson, 36, and school district employees Winfred "Randy" Johnston, 47, William "Mont" Rodes, 29, and Mark Rowe, 40, were arraigned before U.S. Magistrate Mark Hornsby on conspiracy and mail fraud charges.
Through their attorneys, each defendant entered his plea and waived the reading of the indictment. Each was ordered to sign a $25,000 signature bond; however, Wilson and Lee are being held in the Caddo Correctional Center for probation or parole holds.
Ark-La-Tex Air Repair also is considered a defendant in the case but was without representation Monday. Hornsby allowed Lee and Wilson to plead not guilty on behalf of the company, but urged them to find an attorney.
"We have a situation where there is a defendant without counsel," Hornsby said. "Air Repair has a right to counsel, but it's not a natural person, and I can't appoint an attorney.
"Any interest you have in this company is at great risk. ...The investment in Air Repair is subject to lose all interest if Air Repair is convicted."
The five were named in an indictment charging them with defrauding the school system of $8.6 million for air-conditioning contracts over a four-year period. Federal investigators say the school district was charged for more expensive air-conditioning equipment than was installed, for equipment and installation in nonexistent rooms, for amounts in excess of the contract price and for replacing units that were functioning properly.
Wilson and Lee are accused of overcharging and fraudulently billing the school system, while Johnston, Rhodes and Rowes are charged with falsely certifying the right equipment was installed and approving invoices for payment that included false information.
Ark-La-Tex Air Repair received more than a quarter-million dollars in contracts from the School Board between January 2004 and July 31. The six-month investigation dubbed Screaming Eagle began after $1,472 disappeared from a safe in the maintenance department and authorities began to probe into the district's bidding process.
The school district employees initially were placed on paid leave, but their pay was stopped Dec. 19, Bossier Superintendent Ken Kruithof said.
Kruithof will recommend the employees be terminated. The matter will be discussed during the Bossier Parish School Board's administration committee meeting today. The employees have a right to request their pay be restarted and state their case before those on the administration committee. However, Kruithof said he had not been notified of whether the three employees were going to appear before the group.
After the administration committee meets, the entire School Board will meet Thursday to vote on Kruithof's recommendation to terminate the employees.
If convicted as charged, the five face up to 20 years in prison and a $250,000 fine on each mail fraud count. Each also faces up to five years and a $250,000 fine for conspiracy.
