metro »
Businessman’s
Plea Agreement
Set For May 12
Ronelle Grier I Contributing Writer
F
ranklin businessman Norman
Shy, 74, the accused vendor in
the middle of a massive kickback
and bribery scheme allegedly involving
many Detroit Public Schools princi-
pals, will be entering into a plea agree-
ment, according to documents filed
with the U.S. District Court.
A plea hearing has been scheduled
for the afternoon of May 12 in front
of Judge Denise Page Hood of the U.S.
Eastern District.
According to a March 29 state-
ment from the office of U.S. Attorney
Barbara L. McQuade, Shy was “at the
center” of the scheme, which involved
fraudulent invoices sent to his compa-
ny, Allstate Sales, for school supplies,
furniture and other materials that were
never delivered.
According to prosecutors, Shy
received an estimated $2.7 million from
DPS as payment for fraudulent invoices
and paid out close to $1 million in the
form of direct monetary bribes and
other kickbacks such as prepaid gift
cards and funds paid to third parties or
companies for their benefit.
In addition to Shy, 12 current and
former Detroit Public Schools princi-
pals, along with Clara Flowers, assis-
tant superintendent of DPS’ Office of
Specialized Student Services, have been
charged with participation in the exten-
sive scheme that has been going on for
the past 13 years.
McQuade described the scandal as a
“punch in the gut” to a school district
whose finances are already stretched
beyond its limits. One of those charged
was Ronald Alexander, principal of
Spain Elementary School, a facil-
ity whose substandard conditions
drew the attention of celebrity Ellen
DeGeneres, who pledged a $500,000
gift card from Lowes to make needed
improvements to the school.
The bribes and kickbacks charged
ranged from $4,000 to $324,785. The
largest amount was allegedly received
by Flowers. In addition to the charges
of conspiracy to commit bribery in a
federal program, Shy and Flowers were
charged with an additional count of tax
evasion for failing to report income.
Shy is represented by Southfield
attorney Christopher Andreoff, who was
unavailable for comment at press time.
The details of the plea agreement are not
known and will be discussed at the May
12 proceeding in front of Hood.
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April 14 • 2016
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