Greed and the Perfect Audit

***READER DISCRETION IS ADVISED***

Posts about real school tragedy, crime, and/or events can be upsetting.

Robin Lyons blogBLOG POST #211: This week, I’m sharing research on a specific crime involving a school district chief financial officer.

As the chief financial officer in the K-12 school district with close to thirty-five thousand students, his salary was one of the highest in the district. He’d been with the district twenty-five years.

High Marks

For twenty-four years, the school district’s independent auditors gave the school district high marks for their excellent financial practices. As would be expected, the superintendent proudly spoke to the school board about this incredible achievement.

Least Scrutinized Funds

After the joint state and federal investigation, it was determined the chief financial officer had been stealing from the district for at least sixteen of the twenty-four perfect audit years. The auditors did nothing wrong. When conducting audits, typically, auditors don’t follow every penny in and out. Clearly, the former CFO understood where there would be less scrutiny.

Staff Shakeup

One month after the superintendent announced the positive audit results for the 24th successive year—the district fired the CFO due to the FBI investigation. Two months after the CFO’s firing, the superintendent resigned.

Sentence and Payback

Because he had embezzled money from federal and state sources and brokered kickbacks for awarding insurance contracts to specific companies, he faced charges in both jurisdictions.

The former financial officer pleaded guilty to numerous charges of embezzling public funds, forgery, breach of trust, charges of public corruption.

In federal court, the judge sentenced him to 5 years. The state judge sentenced him to eleven years, concurrent with the federal sentence.

The state judge also ordered the defendant to pay more than $1.3 million in restitution to the school district. To guarantee the restitution is paid, the judge signed a Notice of Lien against his state retirement benefits—the school district will be paid what they are due before he can receive any benefits.

What are your thoughts about this case? Join the conversation on the website. We talk about the sensitive subject of crimes occurring at or connected to schools.

Do you know of a school crime you’d like to share? Email me so we can discuss the details.

Thanks for reading!

-Robin

Source: U.S. Department of Justice, South Carolina Attorney General, The Charleston Post and Courier, The Berkeley Observer

Have you joined the club? Find out more at:  Reader Club

Where to buy Robin Lyons books

Available wherever you purchase or borrow books—including libraries. If the books aren’t on the shelf, ask for them to be ordered.

Where to buy Robin Lyons books

Sharing is caring...Share the School News...

2 thoughts on “Greed and the Perfect Audit

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.