Former Detroit Public Schools Bookkeeper Pleads Guilty to Federal Program Fraud

Allen Swayze, 34, of Detroit, a former Detroit Public Schools (“DPS”) bookkeeper, pleaded guilty today to embezzling over $148,000 from the Breithaupt Career and Technical Center, the DPS school where he was employed.

United State Attorney Barbara L. McQuade was joined in this announcement by Andrew G. Arena, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

Defendant Swayze admitted in court today that between August, 2006 and May, 2009, he wrote fraudulent and unauthorized checks drawn on Breithaupt bank accounts in the amount of $148,772.86 to himself and then deposited them in his bank accounts.

Under the terms of the agreement, Swayze faces a maximum penalty of 18 months and a $250,000 fine. He must also pay DPS restitution in the amount of $148,772.86. Sentencing has been set for August 23, 2011 at 10:30 a.m.

United State Attorney Barbara L. McQuade said, “We hope that this case will deter others from stealing money intended to benefit our school children. Officials who steal school funds will be caught and brought to justice.”

Special Agent Andrew G. Arena, stated, “Public schools are one of the largest recipients of federal funding. The FBI continues to aggressively investigate individuals who steal funds originally designated for the Detroit Public Schools and the children of the City of Detroit.”

The investigation of this case was conducted by the Federal Bureau of Investigation and the DPS Office of Inspector General and prosecuted by Assistant United States Attorney Pamela Thompson.