An attorney for a Layton couple at the heart of a financial scandal at the Davis County School District accused a federal judge of bias and called for her recusal during a hearing Monday.

On the same day, federal prosecutors filed a motion to have defense attorney Paul Gotay removed from the case, citing conflicts of interest and for accepting money that may be part of the $4.3 million in federal education funds that John and Susan Ross are accused of stealing.

The Rosses have both been indicted on 47 counts of mail fraud, money laundering, theft of government funds and copyright infringement. According to the indictment, while working as the district's director for the federal "Title I" program for disadvantaged students, Susan Ross operated a company called Notable Education Writing Services, which worked with a second com- pany, Research and Development Consultants Inc. to create unauthorized copies of text books, which were sold to the district at inflated prices.

According to a motion to disqualify filed Monday, federal prosecutors say Gotay maneuvered to represent the owners of R&D during the investigation while at the same time representing the Rosses. The government argues because the owners of R&D are likely to be called as trial witnesses, Gotay has a conflict of interest. The motion also states that Gotay "engaged in multiple financial transactions with the defendants." Gotay said he was paid by the Rosses to represent them during a year-and-a-half investigation as well as being paid up front for criminal defense in court. He said the FBI has since frozen one of his accounts containing the money.

Gotay requested to review grand jury testimony of the R&D owners to work on a written reply to the motion to have him booted from the case. U.S. District Magistrate Judge Brooke Wells said Gotay would have to submit a written motion within 48 hours. When Gotay protested, Wells said there was "significant question" over the conflicts alleged by prosecutors.

At that point Gotay accused the judge of already making up her mind on the motion. "I'm going to make a motion to have yourself recused your honor," Gotay said. Wells said he was welcome to file the motion.

Outside of court, Gotay said he had "bit his tongue as much as he could" with a case he said was based on "personal innuendo and personal attacks" but said he lashed out when he felt Wells had indicated she had made up her mind to remove him from the case before he had a chance to respond. A hearing has been scheduled for Dec. 19.

Gotay contends that his clients are innocent and that Davis County School District officials are laying the blame for decades of mismanagement on his clients. He also accuses federal prosecutors of trying to have him removed from the case because of his knowledge of the investigation and that it would be easier to pressure the Rosses into a plea deal with him out of the picture.

Earlier, Wells found there was no reason to hold the Rosses in federal custody and ordered them to continue to be released pending trial under travel restrictions. The couple was also ordered not to make any major financial transactions.

Susan Ross' former secretary, Stella Smith also appeared in court Monday. Smith was indicted on 37 counts of mail fraud for allegedly charging the school district for $338,000 in books the district never received.

Wells also allowed Smith to remain on release pending her trial under similar restrictions.

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E-mail: gfattah@desnews.com