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Feds: 12 Detroit principals stole $1M in kickback scheme

Detroit Free Press 3-31-16

In its latest crackdown on school corruption in Detroit,  the federal government today dropped a legal bomb on 12 current and former principals, one administrator and a vendor — all of them charged with running a nearly $1-million bribery and kickback scheme involving school supplies that were rarely ever delivered.

At the heart of the alleged scheme is businessman Norman Shy, 74, of Franklin,  who is accused of paying $908,500 in kickbacks and bribes to at least 12 Detroit Public Schools principals who used him as a school supply vendor in exchange for money — some for as little as $4,000, another for $324,000. He secretly did this for 13 years, scamming school after school to the tune of $2.7 million with the help of principals who benefited along the way, prosecutors allege.

The news of the corruption case comes at a critical time as the state grapples with fixing the finances of the struggling Detroit district, the largest school system in Michigan. DPS has been under the control of a state-appointed emergency manager since 2009 and has accumulated an operating deficit of at least $515 million.

READ MORE:

http://www.freep.com/story/news/local/michigan/detroit/2016/03/29/f...

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