Posted on April 1, 2016

Detroit Principals’ Bribery Con Cost Schools $2.7M, Say Feds

Clyde Hughes, Newsmax, March 30, 2016

A dozen current and former Detroit schools principals have been charged in a $2.7 million bribery scheme involving kickbacks for fraudulent invoices, federal prosecutors revealed.

The prosecutors accused Norman Shy, 74, owner of Allstate Sales, with submitting false invoices to Detroit Public Schools and then using part of the payments from the school district as kickbacks to school principals with whom he allegedly conspired, according to a U.S. Attorney’s Office statement.

Prosecutors accused 13 school officials–12 current or former Detroit school principals and an assistant superintendent–in the scheme in which Shy received $2.7 million from Detroit Public Schools and the school administrators received $908,518 in kickbacks.

“It is a heavy blow to public confidence when so many school principals are charged with bribery,” said U.S. Attorney Barbara L. McQuade. “Public officials should take note that while it may seem easy to take bribes when they are offered, officials who betray their public trust will eventually get caught and will face the consequences.”