Vendor At Center Of $2.7M Detroit Public Schools Kickback Scheme Sentenced

DETROIT (WWJ) – A Detroit Public Schools vendor convicted in a massive bribery scheme will spend five years in prison.

WWJ’s Laura Bonnell reports 74-year-old Norman Shy showed no emotion when the sentence was handed down in federal court Tuesday morning.

He told U.S. District Judge Victoria Roberts  hat he made “a horrible mistake.”

As part of a plea deal with prosecutors, Shy will also have to pay back $2.7 million he received as part of the scheme. He also agree to cooperate with federal investigators in the corruption probe that’s rocked the troubled district.

When he gets out of prison, Shy will be supervised for two years.

Investigators say bogus invoices were submitted by school employees for chairs, paper and other supplies, some of which were never delivered to the city’s struggling schools. The government says Sky paid about $900,000 in kickbacks, in the form of gift cards and cash, to school principals who would sign off on the inflated invoices.

In exchange, Shy and his company allegedly received approximately $2.7 million from DPS.

Twelve principals have been charged in the case, as well as former DPS administrator Clara Flowers ,who received as much as $325,000. [See a list of all charged in the case].

All but one of the principals has pleaded guilty.

Also sentenced on Tuesday, Flowers got 36 months behind bars.

TM and © Copyright 2016 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2016 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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