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Thursday, July 16, 2015

Houston charter school leaders accused of embezzling $2.6 million meant for kids - Houston Chronicle

Houston charter school leaders accused of embezzling $2.6 million meant for kids - Houston Chronicle:

Houston charter school leaders accused of embezzling $2.6 million meant for kids






The founding superintendent of Houston's Varnett charter school and her husband have been indicted on charges of embezzling more than $2.6 million intended to benefit impoverished students, the U.S. Attorney's Office announced Thursday.
Marian Annette Cluff and Alsie Cluff Jr., the school's former facilities manager, are expected to appear before U.S. Magistrate Judge Nancy Johnson this week on the 19-count indictment returned late Wednesday, according to a statement from federal authorities.
The Cluffs, who resigned in 2014, are accused of opening four "off-books accounts," kept secret from the school's office manager, external accountant and income tax preparer, the statement said. Specifically, they embezzled more than $1 million from "money orders" that parents submitted for school field trips and fundraisers such as books fairs and carnivals, and hid money from vendors, insurance companies and federal agencies, according to the authorities.
The couple also failed to pay taxes on the money and are charged with evading nearly $852,000 in federal income taxes, the statement said.
"Today's indictment alleges that these school officials abused their positions of trust to steal funds from the very ones they promised to serve — the children who attended the Varnett Public School," said Neil Sanchez of the U.S. Department of Education's Office of Inspector General.
The Texas Education Agency proposed revoking Varnett's accreditation after an agency investigation found wrongful spending, but proceedings have not taken place and the school continues to operate, said spokeswoman DeEtta Culbertson.
Dan Cogdell, a Houston attorney representing the Cluffs, said the couple was aware of the federal investigation and already has repaid a "significant" amount of money to the school.
"There were certainly errors in judgment made," Cogdell said. "They've acknowledged that, but at the end of the day they're Houston charter school leaders accused of embezzling $2.6 million meant for kids - Houston Chronicle: