DETROIT - The Detroit Public Schools has filed a lawsuit against one of its former department managers for allegedly issuing more than $45 million in unauthorized contracts, according to The Detroit News.
The lawsuit claims that Stephen Hill, who managed the DPS' Risk Management Office from 2001 to 2007, established these contracts by ignoring accounting procedures and creating a computer system separate from the district's network. According to The News, the lawsuit also alleges that Hill received kickbacks and that the contracts in question produced few services in return for the school district's payments.
Hill's assistant at the time is also named as a defendant in the lawsuit, according to The News. The News reported that no criminal charges had been filed at that time.
The Detroit News, "Lawsuit: Former DPS employee created elaborate scheme to pay cronies," July 1, 2008
Michigan Education Report, "Financial scandals exposed in Michigan school districts," Nov. 17, 2002