Eight Detroit Principals Convicted of Bribery Forfeit State–Funded Pensions

DETROIT, MI – Michigan Attorney General Bill Schuette today announced that he has secured the forfeiture of the state-paid portions of the pensions held by eight of the Detroit principals convicted last year of accepting federal program bribery in a $2.7-million kickback scheme that resulted in charges against former Detroit Public Schools vendor Norman Shy and 13 district officials.

The judgement was entered by Wayne County Circuit Court Chief Judge Robert Colombo. The state paid pension contributions were forfeit which means they will no longer be paid to the individuals, and those individuals that owe repayment, will experience a further reduction in their pensions  until full re-payment has been made.

“The future of our state depends on the education of the next generation. School leaders have an inherent duty to provide and protect our students, not steal from them,” said Schuette.

Motion for Forfeiture and Entry of Default Judgment was granted on Friday, April 28, 2017 as to the following Detroit Principals:

  • Clara Flowers: Pension reduced by $1416.29 less per month or $16,995.48 per year and re-pay to State $27,037.60  in overpayments as result of the forfeiture
  • Beverly Campbell: Pension reduced by $3439.67 per month or $41,276.04 per year and re-pay to State $89,294.42 in overpayments as result of forfeiture
  • Stanley Johnson: Pension reduced by $1472.24 per month or $17,666.88 per year
  • Ronald Alexander: Pension reduced by $1,067.22 per month or $12,806.64 per year and re-pay $38,139.17 in overpayments as result of forfeiture
  • Tia Von Moore-Patton: pension reduced by $1459.23 per month or $17,510.76 per year
  • Ronnie Sims: Pension reduced by $1,066.90 per month or $12,802.80 per year
  • Clara Smith: Pension reduced by $1822.46 per month or $21,869.52 per year and re-payment of $33,924.83 in overpayments as a result of the forfeiture
  • Willye Pearsall: Pension reduced by $1325.76 per month or $15,909.12 per year and re-payment of $70,352.30 in overpayments as a result of the forfeiture.
  • A previously entered stipulated order of forfeiture for James Hearn reduced his pension by $ 1560.95 per month or $18,731.40 per year.

The total amount the nine principals are required to suspend is:

  • Monthly: $14,630.72
  • Annual: $156,837.24
  • Amount to be re-paid to State/MPSERS :$ 258,748.32

Michigan law provides for the forfeiture of public employee retirement benefits paid by the State into the retirement fund if a member or retiree is convicted of or enters a guilty plea to a felony that is related to their service as a public employee. The confiscated funds cannot be used to pay restitution.

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