Former Detroit Public School Official and Employee Charged with Fraud

A former payroll manager of the Detroit Public Schools (“DPS”) was indicted today by a federal grand jury in Detroit with conspiring with a retired DPS employee to fraudulently obtain money from the DPS, United States Attorney Terrence Berg announced today.

Mr. Berg was joined in the announcement by Andrew G. Arena, Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Robert Bobb, Detroit Public Schools’ Emergency Financial Manager.

The fraud from DPS, a federally funded entity, occurred between 2000 and 2005. During that time, Toni D. Gilbert, age 44, of Detroit, worked as a payroll manager for DPS, with authority to issue payroll checks. According to the indictment, during the term of the conspiracy, Gilbert issued regular DPS payroll checks to co-defendant, Anton V. Carter, age 55, of Detroit, totaling in excess of $400,000, after Carter had retired from DPS due to a disability for which he was receiving disability checks from DPS.

United States Attorney Terrence Berg said, “Diverting funds from a federally funded institution to line one’s own pockets is a fraud on the taxpaying public that constitutes a federal crime, but stealing from an a public school system is also a crime against our children and the very future of our society. ” Berg offered special thanks the Detroit Public Schools for its cooperation and strong efforts to weed out corruption from within its own institution.

Special Agent in Charge Andrew Arena, stated, “Public schools are one of the largest recipients of federal funding. The FBI continues to aggressively investigate individuals and entities that misuse and/or misdirect funds that are originally designated for the Detroit Public Schools and the children of the City of Detroit. The FBI would like to extended gratitude to John Bell and the Detroit Public Schools Office of Inspector General for their assistance and cooperation in this case.”

Robert Bobb, DPS Emergency Financial Manager, stated, “Today’s indictment should send a strong message that theft from DPS will no longer be tolerated." Mr. Bobb noted the new DPS Office of Inspector General is actively pursuing a number of other possible criminal investigations involving theft and misappropriation of District funds. He stressed the OIG is working closely with local, state and federal agencies to insure that persons illegally diverting resources from DPS students are identified and prosecuted.

If convicted Gilbert and Carter each face a maximum sentence of ten years imprisonment and a fine of $250,000.

The investigation of this case was conducted by the Federal Bureau of Investigation, and the case is being prosecuted by Assistant U.S. Attorney John Engstrom, all of whom U.S. Attorney Berg thanked and congratulated.

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