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Key Figure In Detroit Schools Corruption Case Pleads Guilty To Bribery

DETROIT (WWJ/AP) - A contractor accused of paying a dozen Detroit Public Schools principals to get their business has pleaded guilty to bribery and tax evasion — the latest conviction in a corruption probe that's rocked the troubled district.

As part of a deal with prosecutors, 74-year-old Norman Shy must repay $2.7 million to DPS and could face more than five years in prison. As part of his plea Wednesday, the suburban Detroit man agreed to cooperate with federal investigators.

Investigators say bogus invoices were submitted by school employees for chairs, paper and other supplies, some of which were never delivered. 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 an administrator who allegedly received as much as $325,000. [See a list of all charged in the case]

Shy will be sentenced on Sept. 6 and will get, if guidelines are followed, about 5 years in prison.

Developments in this case come while Michigan lawmakers are trying to come up with a bailout for the distressed school district, which is loaded with debt.

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 This material may not be published, broadcast, rewritten, or redistributed.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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