From Deseret News archives:

Fraud case: Amount, size staggering

Published: Monday, Nov. 27, 2006 1:03 p.m. MST
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Another employee, Susan Ross' secretary, Stella Smith, allegedly started her own scheme.

According to the indictment, Smith submitted paperwork to the school district to have E.B. Smith Co. approved as a vendor. Using that company name, Smith submitted purchase orders for books that had not been requested by district employees. Once purchase orders were issued, Smith allegedly mailed fraudulent invoices showing that E.B. Smith Co. had supplied the books. But no such books were delivered.

The indictment says Smith collected about $338,000 in fictitious book purchases between 1999 and 2005.

Since the investigation began 1 1/2 years ago, district leaders have instituted new safeguards to alert them to questionable activity sooner. District officials now look at the frequency of orders with vendors as well as the amount of those dollars.

About 14 schools in the district receive Title I funding, and $4.2 million could have gone a long way.

The Utah Professional Practices Advisory Committee, which works in conjunction with Lear's office, will investigate the Rosses for potential problems with their professional licenses.

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The committee investigates licensed personnel who are suspected of wrongdoing, even if they are retired or their licenses have expired, Lear said. John Ross' license expired in 2002. His wife's is valid until 2008.


E-mail: terickson@desnews.com; jtcook@desnews.com; jdougherty@desnews.com

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