Nine employees of the Chicago public schools have been indicted in an alleged payroll scheme that generated and deposited $130,000 in bogus paychecks.
The school district’s office of the inspector general, which conducted the investigation and forwarded findings to the Cook County state’s attorney’s office, said last week that two employees assigned to the payroll department generated 50 fraudulent paychecks using their knowledge of a new payroll system. The checks went to seven employees assigned to various schools, in amounts ranging from $1,620 to $7,361. The employees cashed the checks, then paid large portions of the money back to the two payroll department workers.
Seven of the employees have resigned or been terminated and disciplinary action is pending against the other two, the school district said.
A version of this article appeared in the October 29, 2008 edition of Education Week