Published Online: April 12, 2016
Published in Print: April 13, 2016, as Detroit Educators Charged In Kickback Scheme

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Detroit Educators Charged In Kickback Scheme

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A dozen current and former Detroit public school principals, an assistant superintendent, and a well-connected school vendor are facing federal charges for their alleged roles in a bribery and kickback scheme.

The owner of the school supply company Allstate Sales is charged with paying $908,500 in kickbacks to at least a dozen principals who used him as a vendor. The principals certified and submitted phony invoices for school supplies to the assistant superintendent, who steered close to $3 million in business to Allstate Sales, U.S. Attorney Barbara McQuade said. The supplies and materials were rarely delivered, she said.

The charges come at a critical time for the Detroit district, as state lawmakers mull bailing out the financially strapped district.

Vol. 35, Issue 27, Page 4

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