Two Former Wake School Employees Plead Guilty In Fraud Case
RALEIGH, N.C. — Two more suspects in a multimillion-dollar fraud scheme involving the Wake County Public School System's transportation department pleaded guilty Tuesday to charges that they were connected to the case.
Angela Malloy-Sanders and Pam Stewart were indicted earlier this month on charges of accessory after the fact for their involvement in a scheme to siphon millions of dollars in school money with orders for fake parts.
According to Wake County District Attorney Colon Willoughby, Malloy-Sanders and Stewart were not controlling the scheme, but knew about it because they worked for other former employees implicated in the crime.
Malloy-Sanders reported to Vern Hatley, the former department head, who pleaded guilty last month; Stewart was an administrative assistant to Carol Finch, a former budget analyst, whose case is still pending.
Investigators contend the Malloy-Sanders and Stewart received tens of thousands of dollars in money and gifts because their bosses wanted to keep them happy and quiet.
"It probably began innocently with a gift card or a present and the added benefit, the cumulative effect, was significant," said Eric Chasse, Stewart's attorney.
Both admit they tried to cover up the scheme when school officials asked questions.
"She was a peripheral player," says Robert Nunley, referring to his client, Malloy-Sanders.
As part of a plea deal, Stewart will spend 60 days in jail with probation; Sanders gets nearly two years behind bars. Both women also agreed to each pay back $40,000 for gifts they received.
Hatley, as well as two former managers of Barnes Motor & Parts -- Bobby Browder and Connie Capps -- accepted plea deals that would put them in prison for five to seven years.
Other arrests are possible, and despite all the plea deals, so are trials for two key suspected players, including Finch and Capps' boyfriend, Harold Estes, who says he is not guilty of charges of conspiracy and obtaining property by false pretenses.
"I'm not sure yet if there will be additional indictments/ We'll know before too long," Willoughby said.
Sentencing in all the plea deals will come at a later date because Willoughby said they hinge on the defendants' cooperation in potential trials.
Investigators found thousands of fake orders for parts totaling $3.8 million from June 2003 and 2004. The school system has recovered about $2 million. Authorities said the illegal activity does not extend outside the transportation department.
Angela Malloy-Sanders and Pam Stewart were indicted earlier this month on charges of accessory after the fact for their involvement in a scheme to siphon millions of dollars in school money with orders for fake parts.
According to Wake County District Attorney Colon Willoughby, Malloy-Sanders and Stewart were not controlling the scheme, but knew about it because they worked for other former employees implicated in the crime.
Malloy-Sanders reported to Vern Hatley, the former department head, who pleaded guilty last month; Stewart was an administrative assistant to Carol Finch, a former budget analyst, whose case is still pending.
Investigators contend the Malloy-Sanders and Stewart received tens of thousands of dollars in money and gifts because their bosses wanted to keep them happy and quiet.
"It probably began innocently with a gift card or a present and the added benefit, the cumulative effect, was significant," said Eric Chasse, Stewart's attorney.
Both admit they tried to cover up the scheme when school officials asked questions.
"She was a peripheral player," says Robert Nunley, referring to his client, Malloy-Sanders.
As part of a plea deal, Stewart will spend 60 days in jail with probation; Sanders gets nearly two years behind bars. Both women also agreed to each pay back $40,000 for gifts they received.
Hatley, as well as two former managers of Barnes Motor & Parts -- Bobby Browder and Connie Capps -- accepted plea deals that would put them in prison for five to seven years.
Other arrests are possible, and despite all the plea deals, so are trials for two key suspected players, including Finch and Capps' boyfriend, Harold Estes, who says he is not guilty of charges of conspiracy and obtaining property by false pretenses.
"I'm not sure yet if there will be additional indictments/ We'll know before too long," Willoughby said.
Sentencing in all the plea deals will come at a later date because Willoughby said they hinge on the defendants' cooperation in potential trials.
Investigators found thousands of fake orders for parts totaling $3.8 million from June 2003 and 2004. The school system has recovered about $2 million. Authorities said the illegal activity does not extend outside the transportation department.
- Reporter: Kelcey Carlson
- Photographer: Keith Baker
- Web Editor: Kelly Gardner
Copyright 2007 by WRAL.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
0 Comments
-
- Murder charge filed in death of Raleigh toddler
Updated 10 minutes ago - Woman, hit by bus in Chapel Hill, dies
Updated at 8:53 p.m. |
- Rocky Mount: No 'credible evidence' for ex-police cadet's claims
Updated at 9:24 p.m. |
- E-mail panel proposes longer storage, better training
Updated 56 minutes ago |
- State: Ailing Falls Lake needs assistance
Updated 36 minutes ago |
- Murder charge filed in death of Raleigh toddler
- Most Viewed Slideshows
- Do My Job: Being a mom to multiples
May. 14, 2008 - Pet Photos | May 12 - May 18, 2008
Updated at 9:54 a.m. - Sights from Jenna Bush's wedding
May. 13, 2008
- Do My Job: Being a mom to multiples
STORIES
VIDEOS
SLIDESHOWS
hot topics
(17 votes) edwards makes his choice: obama
(11 votes) woman, hit by bus in chapel hill, dies
(7 votes) benson woman's home overrun by rodents
Multimedia
-
North Carolina lake levelsFind out current lake levels and water-use restrictions in your community.
-
Tassel-turning time again: Thousands graduate in TriangleArea colleges handed out thousands of degrees to graduates this weekend.
-
Campaign Trail Photos of the WeekView photos from the past week on the campaign trail from AP photographers around the country.
-
Merlefest 2008Every year thousands from around the country and beyond make their way to Wilkesboro, N.C. for down home bluegrass and family fun.
-
Obama party at Reynolds ColiseumObama supporters came out to Reynolds Coliseum to celebrate the senator's win in the N.C. primary election.



Welcome to GOLO, where WRAL.com visitors can comment on stories and create profile pages, blogs and photo galleries.
You must be a registered WRAL.com user to use these tools. Click here to register or log in.