Detroit PS: Scam cost $57M FBI investigates ex-risk manager; district sues to recover money

[tonysam]

A former department chief at Detroit Public Schools and his assistant used secret offices and their own computer system to improperly divert more than $57 million in school funds to vendors who provided little, if anything, in return, according to sworn records reviewed by the Free Press.

Documents in a Wayne County Circuit Court lawsuit brought by DPS allege that Stephen Hill of Detroit -- director of DPS risk management from 2001-05 -- received luxury vehicles and other kickbacks. Some of the vendors who benefitted were friends or associates of Hill's or relatives of Hill's assistant, Christina Polk-Osumah of Detroit, court records allege.

When Hill left the district in September 2005, he received a champagne-and-tenderloin farewell bash that cost the impoverished school system $40,000, according to the suit.

The FBI now is investigating the alleged fraud scheme.

Detroit Free Press

[Lerkfish]

1. is there a way we can blame and fire all the teachers?

:sarcasm:

[WhiteTara]

3. absolutely!

If they were so smart, they would not have let that happen!
:rofl: :sarcasm:

[progressoid]

4. Ya know

I wouldn't be surprised if somebody from Arne's office isn't already looking into it.

[sandyj999]

2. This place is one huge mess

[proud2BlibKansan]

5. What else is new?

This kind of financial corruption is common in many school districts.

[Fire1]

6. I must say since Bob Bobb took over we now know why

we had obsolete books and materials.