News, Arts and Culture from WFIU Public Radio and WTIU Public Television
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Vigo Co. School Corp. Sues To Recover Money From Scheme

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.

Tags