Davis school fraud case raises tough questions
This is an archived article that was published on sltrib.com in 2006, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Why did it take so long to detect a problem, and what needs to happen to prevent such infractions in the future?

Davis County parents and administrators face numerous questions about Wednesday's allegations that a Layton couple stole $4.3 million over five years from Davis County schools that receive federal funding for disadvantaged students - and possibly much more.

''If the allegations are true, it is just sad to me,'' said Cheryl Werven, a Davis School Board member from Clearfield who represents some of the affected schools. ''So much of it was on the front page [Thursday], and I just thought, 'Happy Thanks- giving.' ''

Because the board learned Wednesday of the indictment charging Susan G. Ross, 62, and her husband, John Ross, 64, with 47 counts of theft, fraud, copyright infringement and other crimes, members haven't yet met to evaluate what they might be able to do to provide more safeguards against fraud. Those discussions, however, are "absolutely" forthcoming, board member William P. Moore of Bountiful said.

Parents seek assurances that the district will act swiftly.

"Holy cow, that's a lot of money. I'm just floored," said Vonnie Dayton, president-elect of South Clearfield Elementary PTA, a school that receives Title I funds to serve disadvantaged students. "How could they do that, especially to schools and our children?"

The Davis district first detected something was amiss with its Title I programs in spring 2005 after implementing a new review system. Authorities were contacted immediately, said Timothy Fuhrman, special agent in charge of the FBI's Salt Lake City office, which investigated the matter along with the U.S. Attorney's Office, the U.S. Department of Education Office of Inspector General, the IRS and the Farmington Police Department.

The delay in recognizing a problem may be a result of misplaced trust in employees who came up with explanations for discrepancies, Fuhrman said.

U.S. Attorney for Utah Brett Tolman said that trust and a sophisticated scheme could have helped perpetrators cover their tracks over the years. "With that combination, you have the ability to hide" what you're doing, he said.

Susan Ross, who was employed by the district beginning in the 1970s, was director of federal programs before she retired in spring 2005. John Ross is the former Title I specialist for the Utah Office of Education and worked as a grant specialist for the Davis district from March 2000 to February 2005.

The indictment accuses the pair of selling photocopies of books to schools that receive federal Title I funding at vastly inflated prices through an intermediary company, which kept a small percentage of the profit and paid the rest to a company allegedly owned by Susan and John Ross.

The $4.3 million represents money allegedly taken from 2000 to 2005, but officials say the scam may have begun as early as 1985.

"I feel bad this situation has gone on for so long and just been awful," said Davis School Board Vice President Tamara Lowe, of West Point. "It's just a sad, sad situation where money should have been going to student materials and activities rather than someone's pockets."

A representative of the Davis Education Association, the largest union representing Davis teachers, declined to comment Friday.

nstricker@sltrib.com

pmanson@sltrib.com

Officials wonder why alleged theft of $4.3 million wasn't detected sooner
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