Peel Police Charge Six People in School Board Fraud

February 5, 2004 permalink

The following article on malfeasance by staff of the Dufferin-Peel Catholic District School Board has no direct connection to child protection, but we will keep watching. It comes from the Toronto Star.

Note: The original url, now expired, is: http://www.thestar.ca/NASApp/cs/ContentServer ?pagename=thestar/Layout/Article_Type1& c=Article&cid=1075979013066& call_pageid=968332188492&col=968793972154

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Feb. 5, 2004. 08:24 PM
Six charged in $780,000 school board fraud
'Fraudulent use' of grants to the Dufferin-Peel Catholic District School Board

CURTIS RUSH
THESTAR.COM REPORTER

Six people, including a school superintendant, a principal and two teachers, have been charged with defrauding $780,000 of money intended to help students get career counselling and vocational training.

Four had worked for the Dufferin-Peel Catholic District School Board, but only one was still employed by the board as of yesterday.

One was terminated in May, 2002, for "various serious wrongdoings" as a result of a forensic audit carried out by the school board during the investigation.

A principal retired in June, 2002, and a secondary school teacher resigned in August, 2003.

A teacher was suspended with pay today, said Bruce Campbell, a spokesperson for the board.

Two of the people worked as outside consultants and police allege they were acquaintances or business associates of one or more of the school board employees.

"It is a sad day for us," Campbell said.

Peel police allege that the former and current school board employees, as well as two individuals and one corporation, were involved in using false invoicing to divert money received from the federal Human Resources Development Corp.

The alleged fraud also involved secret commissions and was managed through a program called Project Place, which was disbanded in 2002.

From 1998 to 2002, Project Place received about $4.3 million in total funding, Campbell said.

The school board spokesperson added that the board has implemented corrective measures, including a new code of ethics, to prevent further alleged frauds.

"A lot of things got done and some good work got accomplished," Campbell told thestar.com.

Detective Sergeant John Betts of Peel Police said more charges are expected to be laid in the next four to eight weeks but won't necessarily involve people tied to the school board.

Asked if more money is involved, he said: "Yes." He said he didn't know how much.

"We've interviewed over 100 witnesses," Betts told thestar.com.

In addition to money supplied to the school board from Ottawa, police allege that general funds at the school board had also been obtained by employees and related parties through fraud.

"It first came to our attention in late 2001 through our finance department," Campbell told thestar.com.

The funds were accessed through private companies owned and operated by school-board workers, police added.

All those charged with various fraud and bribery offences are from Ontario.

They are former school superintendant Beverly Williams of Brampton, former principal John Price of Burlington, former teacher Nick Kotsos of Georgetown, and Toronto's Patrick Hinchey, Larry Cash and Joanne Menard. Menard was the only teacher still working.

The Toronto-based corporation Cash Lehman and Associates also faces fraud-related charges.