Law & Courts

Schools Probe in City Yields Theft Charges

By Jeff Archer — July 14, 2004 1 min read
  • Save to favorites
  • Print

In what was described as a first step toward rooting out corruption in the New Orleans public schools, federal investigators said early this month that nine current and former district employees had agreed to plead guilty to theft charges.

Eight of the individuals allegedly took part in a kickback scheme in which a district clerk gave false travel reimbursements and other payments to employees, with the understanding that he would receive half the amount back. Those charged include teachers, secretaries, and paraprofessionals. Altogether, they stole about $70,000, investigators said in announcing the pleas on July 2.

Another payroll clerk allegedly stole about $250,000 by issuing checks to herself under her maiden name. A 10th individual, who is not a district employee, also is accused of paying kickbacks to a district official to win contracts with the school system.

Those charged are scheduled to appear in court on July 19 to enter their pleas.

The criminal charges stem from a three-month probe, led by the FBI, that also included investigators from the U.S. Department of Education and the Internal Revenue Service, along with local law-enforcement agencies.

Jim Letten, the U.S. attorney for the eastern district of Louisiana, predicted that more school district staff members would be implicated in the coming months. “Individuals who have been stealing should be squirming right now,” he said in an interview last week.

Invitation to FBI

The investigation is part of a larger campaign by Superintendent Anthony S. Amato to rid the Orleans Parish district of waste and abuse, which, by many accounts, has cost the 70,000-student system many millions of dollars.

Hoping to stop the hemorrhaging of money, Mr. Amato took the unusual step this spring of inviting the FBI to set up shop in the district’s central office.

“I knew for a fact that I do not have the resources or the skills to uncover a systemic approach to criminal intent,” he said last week. “This is not just a single event; these are not people working in isolation. These are well-planned out, large-scale thefts.”

Mr. Amato, who was hired in February of 2003, is under the gun to fix long-standing fiscal-management problems that have allowed fraud to go undetected. A state auditor’s report in March blamed a lack of financial controls for the disbursement of paychecks to people who no longer work for the schools.

A version of this article appeared in the July 14, 2004 edition of Education Week as Schools Probe in City Yields Theft Charges

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
College & Workforce Readiness Webinar
Smarter Tools, Stronger Outcomes: Empowering CTE Educators With Future-Ready Solutions
Open doors to meaningful, hands-on careers with research-backed insights, ideas, and examples of successful CTE programs.
Content provided by Pearson
Recruitment & Retention Webinar EdRecruiter 2026 Survey Results: How School Districts are Finding and Keeping Talent
Discover the latest K-12 hiring trends from EdWeek’s nationwide survey of job seekers and district HR professionals.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Professional Development Webinar
Recalibrating PLCs for Student Growth in the New Year
Get advice from K-12 leaders on resetting your PLCs for spring by utilizing winter assessment data and aligning PLC work with MTSS cycles.
Content provided by Otus

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Law & Courts Supreme Court Signals Support for State Bans on Trans Girls in Sports
The U.S. Supreme Court weighed Idaho and West Virginia laws that bar transgender girls from sports.
7 min read
Becky Pepper-Jackson holds hands with her mother Heather Jackson outside the Supreme Court after arguments over state laws barring transgender girls and women from playing on school athletic teams on Jan. 13, 2026, in Washington.
Becky Pepper-Jackson holds hands with her mother, Heather Jackson, outside the U.S. Supreme Court after arguments over state laws barring transgender girls and women from playing on female athletic teams on Jan. 13, 2026, in Washington.
Julia Demaree Nikhinson/AP
Law & Courts After 60 Years, a Louisiana District Fights to Exit Federal Desegregation Order
St. Mary Parish is on the frontlines of a legal battle to end ongoing school desegregation cases dating back to the civil rights era.
Patrick Wall, The Advocate, Baton Rouge, La.
6 min read
School bus outside Patterson High School in St. Mary Parish, in Louisiana.
School bus outside Patterson High School in St. Mary Parish, in Louisiana.
Brad Kemp/The Advocate
Law & Courts School Sports Case Reaches the Supreme Court at a Fraught Time for Trans Rights
The justices will consider state laws that bar transgender girls from participating in female sports.
8 min read
Fifteen year-old Becky Pepper-Jackson tosses a discus at home in West Virginia.
Fifteen-year-old Becky Pepper-Jackson tosses a discus at home in West Virginia. Her challenge to the state’s ban on transgender girls in school sports is now before the U.S. Supreme Court.
Scout Tufankjian/ACLU
Law & Courts Judge Bars Trump Admin. From Purging DEI Terms From Head Start Funding Requests
The federal judge also prohibited further layoffs of staff from the federal Office of Head Start.
2 min read
Students ride tricycles during aftercare at a Head Start program run by Easterseals, an organization that gets about a third of its funding from the federal government, Jan. 29, 2025, in Miami.
Students ride tricycles during aftercare at a Head Start program run by Easterseals, an organization that gets about a third of its funding from the federal government, Jan. 29, 2025, in Miami.
Rebecca Blackwell/AP