Prosecutors allege that while working as the district's director of Title I federal funds, Susan Ross used two shell companies to sell pirated education materials back to the schools at inflated prices.

Husband John Ross was working as the district's grant writer at the time

Stella Smith, who was Susan Ross' secretary, was also indicted on charges of running an embezzlement scheme. Smith is charged with 37 counts of mail fraud, accused of creating fake book orders and charging the school district for some $338,000 in books it never received.

Davis leaders are declining to comment further on the case. "We are not going to be making any other comments — the process will be handled in federal courts. I don't know how long that may take," Williams said. "At this point the best thing that we can say is not anything in addition to statements last week."

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