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Ex-principal in Detroit corruption case gets 15 months

WWJ’s Laura Bonnell reports 74-year-old Norman Shy showed no emotion when the sentence was handed down in federal court Tuesday morning.

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A corrupt businessman who sold supplies to the Detroit school district is returning to court for his sentence in a case that has snagged a dozen principals.

He told U.S. District Judge Victoria Roberts hat he made “a terrible mistake”.

Shy pleaded guilty to billing the school system for supplies that were never delivered.

In exchange for fraudulent invoices, Shy paid off bribes and other kickbacks for DPS officials using “a portion of the payments” received from the district.

“There are no words to express how awful I feel and how embarrassed and ashamed I am, ” Shy said in court.

“Any number of vendors now stand in the shoes of Mr”.

Roberts said she hopes Shy’s sentence sends an “important message” to other white-collar criminals: “There is no immunity from consequences of this type of fraud on our children”. “Deterrence of others is a laudable goal”. The government says Sky paid about $900,000 in kickbacks, in the form of gift cards and cash, to school principals who would sign off on the inflated invoices.

Shy paid more than $900,000 in bribes and kickbacks to 13 school officials, according to the US attorney’s office.

Shy also has to pay $2.7 million in restitution to the school district and more than $51,000 in back federal taxes.

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Roberts also noted the “court has evidence … of a similar scheme” involving 22 current and former Detroit school principals. The remaining accused principal will go to trial.

Norman Shy received a 5-year prison sentence for submitting phony invoices to Detroit Public Schools.
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