Business & Finance

Vendor gets 5-year prison term in Detroit Public Schools kickback scheme

Norman Shy pleaded guilty to submitting $2.7 million in phony invoices.
Sept. 6, 2016

A vendor who did business with the Detroit Public Schools for four decades has been sentenced to serve five years in prison for cheating the district out of $2.7 million.

The Detroit Free Press reports that Norman Shy, 74, received the sentence Tuesday after pleading guilty in May to taking part in a kickback scheme he ran with 12 principals and an assistant superintendent.

In sentencing Shy, U.S. District Judge Victoria Roberts stressed that the prison term was intended to send a message to other vendors that corruption cannot be tolerated.

"There are no words to express how horrible I feel and how embarrassed and ashamed I am," Shy said. "I made a horrible mistake and I accept full responsibility."

Shy pleaded guilty to billing the school system for supplies that were never delivered. Twelve principals and an assistant superintendent approved his phony invoices in exchange for kickbacks.

The judge also ordered Shy to pay back $2.7 million in restitution to the school district and $51,667 in back taxes.

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Mike Kennedy

Senior Editor

Mike Kennedy, senior editor, has written for AS&U on a wide range of educational issues since 1999.

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