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
Special Education Webinar
Hidden Costs of Special Ed Vacancies: Solutions for Your District
When provider vacancies hit, students feel it first. Hear what district leaders are doing to keep IEP-related services on track.
Content provided by Huddle Up
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
Privacy & Security Webinar
How Technology Is Reshaping Childhood
How do we protect kids online while embracing innovation? Learn about navigating safety, privacy, and opportunity in the Digital Age.
Content provided by Connect x Protect
Budget & Finance Webinar Creative Approaches to K-12 Budget Realities
What are districts prioritizing in 2026? New survey data reveals emerging K-12 budgeting trends.

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 Birthright Citizenship Case Raises Stakes for Schools and Undocumented Students
Educators are paying close attention to the case on Trump's birthright citizenship order.
10 min read
President Donald Trump signs an executive order on birthright citizenship in the Oval Office of the White House in Washington, Jan. 20, 2025.
President Donald Trump signs an executive order on birthright citizenship in the Oval Office of the White House on Jan. 20, 2025. The order, now before the U.S. Supreme Court, seeks to limit citizenship for some children born in the United States to immigrant parents without permanent legal status.
Evan Vucci/AP
Law & Courts Appeals Court Revives Lawsuit Over 1st Grader’s Black Lives Matter Drawing
A court revived a 1st grader 's claim she was punished for giving a drawing to a Black classmate.
4 min read
Seen is the drawing made by Viejo Elementary School first-grader B.B. that was entered into evidence. B.B. gave the drawing to her classmate, M.C., who is African American. M.C. thanked B.B.
Pictured is a drawing by a 1st grader in California and given to a Black classmate that is at the center of a First Amendment legal challenge over the student's alleged punishment.
U.S. Court of Appeals for the 9th Circuit
Law & Courts Supreme Court’s Gender Identity Ruling Leaves Schools Seeking Clarity
Advocates say they would welcome more from the Supreme Court on gender-notification policies.
7 min read
The Supreme Court is photographed, Friday, Feb. 27, 2026, in Washington.
The Supreme Court is photographed, Friday, Feb. 27, 2026, in Washington. The high court recently ruled that California policies that sometimes limit or discourage schools from disclosing information to parents about children’s gender transitions and expressions at school likely violate parents’ constitutional rights
Rahmat Gul/AP
Law & Courts Supreme Court Backs Parents in School Gender Disclosure Fight
The Supreme Court restored an injunction blocking California policies on student gender transitions
8 min read
Teacher’s aide Amelia Mester, wrapped in a Pride flag, urges Escondido Union High School District not to have employees notify parents if they believe a student may be transgender in November 2025. A policy on the issue in the city’s elementary school district is the subject of a federal class-action lawsuit in which a judge just sided against the district.
Teacher’s aide Amelia Mester, wrapped in a Pride flag, urges Escondido Union High School District not to have employees notify parents if they believe a student may be transgender at a meeting in November 2025. Two parents and two teachers from the district sued in 2023, challenging California state guidance concerning student gender transitions and parental notification. The U.S. Supreme Court has now reinstated a lower-court decision overturning those state policies.
Charlie Neuman for The San Diego Union-Tribune/TNS