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Twelve current and former Detroit Public Schools principals, along with an assistant superintendent and a vendor, were charged in a bribery and kickback scheme that ran from 2002 to January 2015 and involved millions of dollars, federal authorities announced Tuesday.
“It is a heavy blow to public confidence when so many school principals are charged with bribery,” said U.S. Attorney Barbara McQuade in a statement. “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.”
At the heart of the scandal is Norman Shy, 74, of Franklin, owner of Allstate Sales, a DPS vendor of school supplies, authorities said.
Federal authorities alleged in criminal complaints that each school official conspired with Shy to "knowingly certify and submit" fraudulent invoices to DPS so that Shy could get paid for good never delivered.
The goods included auditorium chairs, supplemental teaching materials and raised line paper.
In return, Shy paid bribes and kickbacks, using a portion of the payments he received from DPS from the fraudulent invoices, authorities said in a news release.
Authorities charged that the principals accepted bribes and kickbacks in various forms, including prepaid gift cards, cash and checks payable directly to them or to third parties.
In all, Shy allegedly paid to the 13 school officials about $908,518 in kickbacks and bribes. In exchange, Shy and his company received approximately $2.7 million from the school system for the fraudulent invoices.
"As a former educator, this case strikes to my very core," David P. Gelios, head of the Detroit FBI said in a statement. "To enrich oneself at the expense of school children is bad enough, but to misapply public funds intended to educate kids in a district where overall needs are so deep, funding sources are so strained, and the need for better education is so crucial, is reprehensible and an insult to those educators working every day to make a better future for our children."
Each of these face one count of conspiracy to commit federal program bribery.
1. Norman Shy (vendor), 74, of Franklin, and Clara Flowers, 61, of Detroit; Flowers is the former principal of Henderson Academy and current assistant superintendent of DPS’ Office of Specialized Student Services. Additionally, Shy and Flowers were each charged with one count of tax evasion for failing to report income.
2. Beverly Campbell, 66, of Southfield ($50,000), former principal of Rosa Parks School and Greenfield Union Elementary-Middle School;
3. Clara Smith, 67, of Southfield ($194,000), current principal of Thirkell Elementary-Middle School;
4. Germla Johnson, 56, of Detroit ($22,884), former principal of Charles R. Drew Academy and current principal of Earhart Elementary-Middle School;
5. James Hearn, 50, of West Bloomfield ($11,500), current principal of Marcus Garvey Academy;
6. Josette Buendia, 50, of Garden City ($45,775), current principal of Bennett Elementary School;
7. Nina Graves-Hicks, 52, of Detroit ($27,385), former principal of Davis Aerospace Technical High School;
8. Ronald Alexander, 60, of Detroit ($23,000), current principal of Charles L. Spain Elementary-Middle School;
9. Ronnie Sims, 55, of Albion ($58,519), former principal of Fleming Elementary and Brenda Scott Middle School;
10. Stanley Johnson, 62, of Southfield ($84,170), current principal of Hutchinson Elementary;
11. Tanya Bowman, 48, of Novi ($12,500), former principal of Osborn Collegiate Academy of Mathematics, Science and Technology;
12. Tia’von Moore-Patton, 46, of Farmington Hills ($4,000), current principal of Jerry L. White Center High School;
13. Willye Pearsall, 65, of Warren ($50,000), former principal of Thurgood Marshall Elementary School
