Sandra Campbell, a former Detroit Public Schools contract accountant and school board candidate, as well as her daughter, Domonique Campbell, a Detroit Public Schools teacher, were indicted by a federal grand jury in Detroit on charges of program fraud conspiracy, money laundering conspiracy, and tax charges, U.S. Attorney Barbara L. McQuade announced yesterday.
Ms. McQuade was joined in the announcement by Special Agent in Charge Andrew Arena of the Federal Bureau of Investigation and Special Agent in Charge Erick Martinez of the Internal Revenue Service, Criminal Investigation Division.
The nine-count indictment charges that between 2004 and 2008, Sandra Campbell, 56, and Domonique Campbell, 37, obtained in excess of $530,000 from the Detroit Public Schools through a fraudulent scheme in which orders were placed with the Campbells’ sham company for books and educational materials never provided to the schools. The indictment further alleges that Sandra Campbell and Domonique Campbell conspired to defraud the Internal Revenue Service and failed to report the money they fraudulently obtained from the Detroit Public Schools as income on their tax returns.
Sandra Campbell is also charged in the indictment with wire fraud. This count alleges that Ms. Campbell obtained a $40,000 discount payoff of a $250,000 mortgage on her home through a fraudulent “short sale” of the property to her mother.
U.S. Attorney Barbara L. McQuade said in a prepared statement, “Anyone who considers stealing from our school children should take note that we are scrutinizing records and conduct, and will prosecute wrongdoers. “
Agent Arena added, “The FBI would like to thank all of our partners who continue to assist us in battling corruption. In particular, I would like to note the continued support of DPS Inspector General Van Marsh and his team, The alleged actions of these subjects do nothing more than steal the opportunity for quality education from our children. Such actions can not be tolerated and will be pursued by the FBI and it’s partners.”
Agent Martinez also stated, “Those who profit at the expense of our children and steal from our community will be held accountable for their greedy actions.”
The case was investigated by special agents of the FBI, IRS, and Department of Education, Office of Inspector General, with the assistance of Detroit Public Schools, Office of Inspector General. The case is being investigated and prosecuted by Assistant U.S. Attorneys J. Michael Buckley and Pamela Thompson of the Public Corruption Unit.