Watch CBS News

3 DPS Principals Arraigned In Connection With Alleged Kickback Scheme

DETROIT (WWJ) - The first group of former and current Detroit Public School principals faced a judge for the first time since being charged with conspiracy to commit bribery. Not guilty pleas were entered on behalf of James Hearn, 50, Nina Graves-Hicks, 52, and Stanley Johnson, 62.

Johnson had a supporter in court, Edwina Wright, a former coworker spoke with WWJ's Stephanie Davis.

"I came for support, because when I heard it I was surprised," said Johnson. "He would never do anything like that - he was so concerned about the parents, students and just a wonderful person."

At the center of the case is 74-year-old Franklin resident Norman Shy, owner of Allstate Sales, a DPS vendor of school supplies.

According to court filings -- a total of 13 DPS principals — including one who also worked as an administrator — allegedly conspired with Shy in a scheme to line their own pockets by submitting invoices for supplies that the schools were never to receive. . The scheme began in 2002 and continued until January 2015.

Court documents filed in U.S. District Court state:

"Shy devised and engaged in a scheme to fraudulently obtain funds from DPS by agreeing with at least 13 principals to pay them a total of approximately $908,510 in kickbacks relating to business with DPS worth millions of dollars to Shy in exchange for their agreement to certify and submit, and cause to be certified and submitted, fraudulent invoices to DPS for payments to Shy for goods that were not delivered."

Federal prosecutors allege a group of 13 principals and Shy, a vendor, conspired to submit phony invoices to DPS and the vendor would in turn pay off the principals.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.