District Seeks Recovery of $57M from Alleged Scam


The Detroit Public Schools (DPS) has filed a lawsuit against the former chief of risk management and his assistant, claiming that the pair used secret offices and their own computer system to divert more than $57 million in school funds to vendors that supplied the district with little or no work in return. The lawsuit seeks to get the district’s money back.

The lawsuit says Stephen Hill, the DPS risk management director from 2001 to 2005, and his aide, Christina Polk-Osumah diverted the money in illicit wire transfers to vendors, who were friends or business associates, through Hill’s own computer system to hide improper transactions, reports the Detroit Free Press. Additionally, the lawsuit alleges that Hill received luxury automobiles and kickbacks from at least two of the vendors.

The FBI is currently investigating the case.

For his part, Hill denies that he acted improperly and said he will be vindicated.

For additional information, click here.

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