Former Superintendent, Two Others Sentenced in $1M School Fraud Scheme

A former Chicago school principal and two others have been sentenced to federal prison for their roles in procurement fraud schemes that defrauded a pair of school systems and a non-profit organization out of more than $1 million.

Brian Metcalf, Kimberly Maddox, and James Darnell Campbell schemed to illegally profit from various roles Metcalf held in school systems in Chicago and Indianapolis, as well as a non-profit corporation.

Metcalf, 52, of Baltimore, MD, Maddox, 55, of Matteson, IL, and Campbell, 59, of Frankfort, IL, pleaded guilty to federal wire fraud charges. On Wednesday, U.S. District Judge Lindsay C. Jenkins sentenced Metcalf to a year and a day in federal prison. Last month, Judge Jenkins sentenced Maddox to two years in prison and Campbell to a year and a day. All three defendants were ordered to pay restitution totaling $1,099,200.

Over nearly 10 years, Metcalf and Maddox falsely claimed that Maddox or her spouse were providing services to the schools and the non-profit corporation, when in reality, no such services were provided. As a result of Metcalf’s and Maddox’s fraud, the school systems and the non-profit organization paid Maddox nearly $700,000, which she split with Metcalf.

“When officials defraud school systems, they are eroding trust and stealing from the very futures they are meant to protect,” said U.S. Attorney Boutros. “Holding individuals accountable when they exploit their positions for personal gain sends a strong message that such betrayal will not be tolerated and even more, that the Chicago U.S. Attorney’s Office and federal law enforcement will work hard to protect the integrity of our education system and to ensure that taxpayer funds are properly safeguarded.”

While Metcalf and Maddox were engaging in their fraud, Campbell, who worked as a consultant, approached Metcalf and said he wanted to join the scheme. At that time, Metcalf was serving as the superintendent of a school system in Indianapolis. Metcalf caused the Indianapolis school system to pay Campbell nearly $400,000 based on bogus invoices for consulting work that was never performed. Campbell split those fraud proceeds with Metcalf.

“The outcome of this case serves as a strong deterrent to anyone considering similar criminal acts,” said AmeriCorps OIG Official Pritchard. “Those who steal from organizations funded by federal support will face serious consequences. AmeriCorps OIG is committed to working closely with our law enforcement partners to uncover and address such misconduct. We extend our sincere gratitude to the U.S. Department of Education OIG, the Small Business Administration OIG, and the United States Attorney’s Office for the Northern District of Illinois for their unwavering cooperation and dedication to the pursuit of justice.”

The sentences were announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois; Michael Pritchard, the Official Performing the Duty of Inspector General for AmeriCorps; Scott Wingle, Acting Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Central Regional Office; and Philip Wagenknecht, Inspector General for Chicago Public Schools.

“I am proud of the work of OIG Special Agents and our law enforcement partners in holding these individuals accountable for their criminal actions,” said DOE-OIG Acting SAC Wingle. “And rest assured that we will continue to aggressively pursue those who misappropriate education funds or try to game the system for their own selfish purposes. Our nation’s students and taxpayers deserve nothing less.”

The U.S. Small Business Administration participated in the investigation. The government was represented by Assistant U.S. Attorney Jennifer Chang.

“Administrators who use their position to enrich themselves and deprive CPS families of critical resources will not be tolerated, and neither will vendors who steal from CPS,” said Inspector General Wagenknecht. “CPS OIG investigators are committed to rooting out fraud and corruption in the school district, and we greatly appreciate the work of our law enforcement partners in holding these individuals accountable.”

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