14 to be charged in DPS corruption case

[Zacha341]

Apparently, the summer pay [[ten weeks off) amount for teachers who opt to spread out their pays [[the district holding that amount) was not factored in.

I guess 49 million wasn't enough......

http://www.freep.com/story/news/2016...nday/83798520/

[SDCC]

Unless you can show me where he held a gun to everyone's head and made them an offer they couldn't refuse, it's a bit silly to single him out as the bad guy. These were all grown adults in a position of trust, and they chose to work the system for their own personal gain. I bet every one of them has a "Just Say NO!" sticker somewhere in their office.

Your post is somewhat elemental; every one of them is “bad”, or more commonly known as criminals – and all of them will be convicted felons. Criminal enterprises typically have a hierarchy, and this conspiracy is no different. The former educators were paid by Shy; he is at the top of the pyramid, and he would receive more time as he hatched the plot, benefited the most, and would deemed in a leadership role. In Federal financial crimes, losses – among other factors – are assigned and tallied to each defendant, and will aggravate their sentences, which is yet another indicator of their complicity in the crime.
At the bottom of the barrel there is nothing but maggots, and each one is a maggot.

[Wesley Mouch]

Right. More funding. There are teachers and administrators that still haven't got their piece of the pie yet. Don't stop the bleeding, just order more blood.

Teachers and administrators are only concerned about the students. They spent more money buying books and pencils out of their own pockets than they took from the system. So this isn't really a problem. The schools are still underfunded. The real problem is that the 1% have all the money.

[Lowell]

Judgment Day. Kingpin Norman Shy, 74 of Franklin, admits guilt, facing 5-7. Somehow crimes like this deserve even more penalty for the corrupting others, for stealing from poor kids.

Shy then pleaded guilty to two felony charges: conspiracy to commit federal program bribery, a five-year felony, and income tax invasion, also a five-year felony.

Shy will likely face between five and seven years in prison when sentenced Sept. 6. Sentencing guidelines call for Shy to serve from 70 to 87 months in prison.

The Mumford High School graduate was also ordered to pay $2,768,846.23 in restitution.

Shy, owner and operator of Allstate Sales, which sold school supplies to DPS, admitted he conspired with schools officials who, prosecutors say, submitted fraudulent invoices for school supplies. He did not deliver all the items he billed DPS for.

FBI investigators say Shy hatched the scheme, which ran from 2002 through January 2015, by offering cash, checks and gift cards to DPS officials in exchange for billing the district for $5 million in business with his company.
http://www.detroitnews.com/story/new...case/84225096/

[Honky Tonk]

Judgment Day. Kingpin Norman Shy, 74 of Franklin, admits guilt, facing 5-7. Somehow crimes like this deserve even more penalty for the corrupting others, for stealing from poor kids.

I agree with you about a stiffer punishment being needed. I can't believe this went on for 13 years unchecked. I have a feeling this is just the tip of the iceberg.

[SDCC]

Their Judgement day is in September. The defendants will now visit the Federal probation department and answer their pre-sentence questionnaire. The defendant, their attorney, and an official from probation will go over the questionnaire. Federal pre-sentence investigations are far more in-depth than any state pre-sentence investigation. Probation will score each defendant – which each defendant already has gone over privately with their attorney – and probation will submit its findings and recommendations to the court.
Shy is charged with two felonies: conspiracy to commit federal program bribery, and income tax invasion, both five-year felonies.
Referring to the link you provided, “Shy will likely face between five and seven years in prison when sentenced Sept. 6. Sentencing guidelines call for Shy to serve from 70 to 87 months in prison. $2,768,846.23 in restitution”.
Some of the defendants may be eligible for a probated sentence – not Shy. There are two defendants that took very little money – relativity speaking. Tia’ Von Moore-Patton, principal of Jerry White Center High School is charged with accepting $4,000 in kickbacks.
Gerlma Johnson appropriated $22,884, and is facing 24 and 30 months in prison, she will be sentenced two days after Shy.
I can’t find my Federal Sentencing guidelines book dealing with schemes and scams, no matter, from the sentence that Johnson is facing [[which is minimal) there are mitigating factors which the judge would take into consideration prior to sentencing her.
Johnson was employed at DPS for 29 years, financial crime [[white collar) – first-time offender, forthcoming and contrite in admitting her guilt, likelihood of reoffending is low, no risk to the community, and Johnson is only charged with the one bribery charge. Some of the other defendants are also charged with income tax evasion. Aggravating factor is this scheme involved a public school system, and all of the defendants were acting as an agent, or trustee, at the time of the theft.
Getting back to Shy, he is going to prison, quasi prison. In the Federal system, for an inmate to be eligible for camp [[Camp Snoopy), the sentence would need to be under 10 years, and meet the other parameters established by the Bureau of Prisons. Shy fits the criteria, and IMO would go to one of the camps scattered across the country – hardly prison.
They will all live with what they did; they have been publicly disgraced and humiliated. And when they get out, they will live under the thumb of Federal probation for however many years each one is given at their sentencings.
A pound of thy flesh is not in the calculations.

There have been whispers of fraud on a grander scale at DPS, other than the case at hand.

[Wesley Mouch]

...
There have been whispers of fraud on a grander scale at DPS, other than the case at hand.

Thanks for the commentary.

I can't help but wonder how a culture of privilege like this gets cultivated.

And I can't help but wonder... why no higher-level cases yet. Fraud at DPS is like Milk at Krogers, it seems. The higher-ups should have been catching these cases all along. Or is everyone in. Play, or be shamed. If so, that's terribly sad.

I'm a fan of Charters, as I'm sure all know. I wish the anti-Charter forces were half as energetic in cleaning up DPS. This kind of corruption is proof-positive that Charters are essential. Schools are to educate kids -- and nothing more. They are not jobs factories, social welfare agencies, nor wealth redistribution mechanisms. Geez.

[Packman41]

So, does crime pay??

“Thirteen former and current Detroit Public School principals charged with a felony in a $2.7 million kickback and bribery scheme at the district remain eligible for their state pension.”

http://www.detroitnews.com/story/new...heme/84259456/

“…the U.S. Attorney’s Office does not have standing to request a court order to revoke the pensions.”

“…state statutory language says that if an employee is found in violation of the public trust, a court can order a revocation of his or her public pension. Whether the charge faced by the DPS administrators is considered a violation of the public trust is up to a judge…”

Bottom-line: it is at the discretion of the court to take away their pensions – it is NOT a requirement.

[ABetterDetroit]

So, does crime pay??

“Thirteen former and current Detroit Public School principals charged with a felony in a $2.7 million kickback and bribery scheme at the district remain eligible for their state pension.”

http://www.detroitnews.com/story/new...heme/84259456/

“…the U.S. Attorney’s Office does not have standing to request a court order to revoke the pensions.”

“…state statutory language says that if an employee is found in violation of the public trust, a court can order a revocation of his or her public pension. Whether the charge faced by the DPS administrators is considered a violation of the public trust is up to a judge…”

Bottom-line: it is at the discretion of the court to take away their pensions – it is NOT a requirement.

This one is a no-brainer.

If morals or prison doesn't stop them hang loss of pension on ALL felony convictions. Every government employee I have known in my lifetime the one constant that is near and dear to their heart is the pension.

[SDCC]

Thanks for the commentary.

I can't help but wonder how a culture of privilege like this gets cultivated.

And I can't help but wonder... why no higher-level cases yet. Fraud at DPS is like Milk at Krogers, it seems. The higher-ups should have been catching these cases all along. Or is everyone in. Play, or be shamed. If so, that's terribly sad.

I'm a fan of Charters, as I'm sure all know. I wish the anti-Charter forces were half as energetic in cleaning up DPS. This kind of corruption is proof-positive that Charters are essential. Schools are to educate kids -- and nothing more. They are not jobs factories, social welfare agencies, nor wealth redistribution mechanisms. Geez.

Channel 4 has been running this mini-series on Detroit Community Schools – I caught it for the first time yesterday afternoon. They have been speaking with Ms. McPhail, she is frank and forthcoming with what she is attempting to do and the challenges that Detroit Community Schools faces. Yes, there are teachers that have drifted on the wrong side of the law. Yes, she personally knows some of the teachers she has hired. She allowed the cameras in one of the schools, and students spoke with Channel 4. McPhail, as well as other staff members, familiarize themselves with each student’s special needs – some are hungry, or need tutoring, and so-forth. McPhail stated southwest Detroit is as deadly as she has ever seen it. While the test scores have a long way to go, there is an uptick in scores. Science being the exception, however, not one science teacher has applied for employment.

http://www.clickondetroit.com/video/...r-mcphailure-1

[Zacha341]

We finally have a photo of the kingpin!

Leader of DPS kickback scheme pleads guilty

http://www.detroitnews.com/story/new...case/84225096/

[hybridy]

We finally have a photo of the kingpin!

Leader of DPS kickback scheme pleads guilty


http://www.detroitnews.com/story/new...case/84225096/

Other than looking like a giant turd....he doesn't appear sick. Make him scrub DPS toilets and lock him up at night.

[archfan]

I'm a fan of Charters, as I'm sure all know. I wish the anti-Charter forces were half as energetic in cleaning up DPS. This kind of corruption is proof-positive that Charters are essential. Schools are to educate kids -- and nothing more. They are not jobs factories, social welfare agencies, nor wealth redistribution mechanisms. Geez.

Nor profit centers for companies?

[Honky Tonk]

Nor profit centers for companies?

Nor profit centers for school administrators.

[Wesley Mouch]

... Yes, there are teachers that have drifted on the wrong side of the law

Theft shoudl not be called 'drifting on the wrong side'. Its is a criminal act and should be strongly condemned. Not simply dismissed as a minor error in judgement.

That type of rationalization of evil is part of the problem, IMO. We have zero tolerance for guns. How about zero tolerance for theft by teachers & administrators?

Or maybe we can just catch them as they drift, and talk to them about how their re-assignment of school assets makes us feel.

[Hypestyles]

So does it boil down to just one rogue vendor/sales rep? What about others?

[Wesley Mouch]

This one is a no-brainer.

If morals or prison doesn't stop them hang loss of pension on ALL felony convictions. Every government employee I have known in my lifetime the one constant that is near and dear to their heart is the pension.

It won't happen. Because its exactly as you say. Near and dear. Touching anyone's pension means everyone's pension would be at risk. The name of the game is 'keep the pension at all costs'. So a few thiefs keep their pensions. So a few senior administrators get pensions fit for kings. No adjustments. No dimishments. Everyone with a government pension will fight you if you even try to take pensions from felons. Besides, felons are also voters, in the minds of the progressives.

[SDCC]

So does it boil down to just one rogue vendor/sales rep? What about others?

The U.S. Attorney [[Buckley) assigned to the case declined to comment if others would be charged. There is one more individual – in the case at hand – that has not been arraigned yet, and Buckley had no further comment on that matter.

It’s a forgone conclusion that there are certain individuals not sleeping very well.

[SDCC]

{SIGH}

Chapter 2:
"Federal prosecutors allege that Carolyn Starkey-Darden obtained at least $1.275 million from DPS through a scheme in which she submitted fraudulent invoices for payment to DPS for tutorial services that never were rendered to DPS students".

“In fact, Detroit students were cheated twice by this scheme. Students that needed tutoring never received it, and money that could have been spent on other resources was paid to Ms. Starkey-Darden as part of her fraud scheme.”

This wall of shame will reach and touch the heavens.
How many chapters will there be?

http://www.clickondetroit.com/news/f...ged-with-fraud

[Wesley Mouch]

{SIGH}

Chapter 2:
"Federal prosecutors allege that Carolyn Starkey-Darden obtained at least $1.275 million from DPS through a scheme in which she submitted fraudulent invoices for payment to DPS for tutorial services that never were rendered to DPS students".

“In fact, Detroit students were cheated twice by this scheme. Students that needed tutoring never received it, and money that could have been spent on other resources was paid to Ms. Starkey-Darden as part of her fraud scheme.”

This wall of shame will reach and touch the heavens.
How many chapters will there be?

http://www.clickondetroit.com/news/f...ged-with-fraud

3rd way.... Ms. Starkey-Darden's time and effort didn't go to grant development that she was paid to do, but to her fraudulent activity. This should be generating a lot more outrage than we're hearing from teachers.