How Two School Officials Scammed Millions from COVID-19 Relief Funds
The U.S. Department of Justice (DOJ) has charged two school officials from Texas and Louisiana with fraud and money laundering for allegedly misusing millions of dollars from the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act was enacted in March 2020 to provide emergency financial assistance to individuals, businesses, and organizations affected by the COVID-19 pandemic.
According to the DOJ, David Haynes, the former superintendent of the Houston Gateway Academy charter school in Texas, and Shari Guidry, the former director of special education at the St. Landry Parish School Board in Louisiana, conspired to obtain over $17 million in CARES Act funds by submitting false and fraudulent applications to the U.S. Department of Education (ED). They allegedly claimed that their schools needed the funds to purchase laptops, tablets, and other devices for remote learning during the pandemic.
However, instead of using the funds for their intended purpose, Haynes and Guidry allegedly diverted them to their personal bank accounts and used them for lavish expenses, such as luxury cars, jewelry, real estate, and gambling. They also allegedly paid kickbacks to other co-conspirators who helped them carry out the scheme.
The DOJ said that Haynes and Guidry were arrested on October 27, 2022, and charged with one count of conspiracy to commit wire fraud, one count of wire fraud, one count of conspiracy to commit money laundering, and one count of money laundering. If convicted, they face up to 20 years in prison for each count.
The DOJ also said that this case is part of its ongoing efforts to combat COVID-19 fraud and protect taxpayer funds from abuse. In April 2023, the DOJ announced the largest-ever coordinated law enforcement action to combat COVID-19 health care fraud, which involved criminal charges against 18 defendants for allegedly submitting over $490 million in false billings to federal health programs. In August 2023, the DOJ announced another nationwide COVID-19 fraud enforcement action, which involved criminal charges against 371 defendants for allegedly stealing over $836 million in COVID-19 relief funds.
The DOJ urged anyone who suspects COVID-19 fraud to report it to the National Center for Disaster Fraud Hotline at 866-720-5721 or online at https://www.justice.gov/disaster-fraud.