After years of being fleeced, small school district gets half-million-dollar windfall of restitution

11/21/2013 01:26 PM

Auditor Adam Edelen announced Thursday that a district of roughly 1,000 students in Northern Kentucky will receive $511,000 in payments from its disgraced former superintendent and the accounting firm that ignored the fraud.

An audit into the Dayton Independent School District was released in March , which revealed the abuses by then-Superintendent Gary Rye. The investigation found he received at least $224,000 in benefits and payments over an eight-year period not authorized by the school board.

Almost 90 percent of the students in the district receive free or reduced lunch.

Rye has agreed to pay back $473,000. And the accounting firm that was charged with checking the district’s books will pay another $38,000 in retribution.

A spokesperson for Edelen said that the $473,000 was negotiated with Rye and his attorney for other abuses which needed a dollar amount attributed to it such as compensation days he should have never received.

Edelen called the actions of Rye as part of “extraordinarily significant” while talking to reporters at the Kentucky Association of Counties conference in Louisville.

“(This) clearly communicates the message that one I’m going to be in the education space as long as I’m the tax payer watch dog, and two that there is a real consequence from stealing with kids,” Edelen said.

The reimbursement is the first step into holding Rye accountable Edelen said. He said there would be other steps in short order.

A large portion of the reimbursement is expected up front with an agreed upon schedule for more cash to come through upon a schedule of payments.


Subscribe to email updates.

Subscribe and get the latest political intelligence delivered to your inbox.