News

Indiana school district sues to recover money from scheme

Posted April 06, 2018 7:00 am

The Associated Press

TERRE HAUTE, Ind. (AP) - A western Indiana school district has filed a lawsuit to recover the roughly $100,000 it lost in a multi-year kickback scheme.

The (Terre Haute) Tribune Star reports Friday the suit was filed last month by the Vigo County School Corp. against two former school employees and others. The school board needs to approve the action.

One of the former employees, Frank Shahadey, pleaded guilty to fraud and theft and served 16 months in federal prison. The other, Franklin Fennell, was convicted in December of wire fraud and theft and is set to be sentenced later this month.

They were arrested in November 2016. Prosecutors say the scheme included inflating invoices and keeping the extra money paid by the school system.

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Information from: Tribune-Star, http://www.tribstar.com

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