Feds Open NOLA Schoolboard Payroll Investigation

The Times-Picayune reports that federal investigators have opened a formal investigation of fraud in the New Orleans school system's payroll and benefits operations. At a recent School Board meeting, auditor Stuart Piltch alleged that errors and and potential fraud, "along with overpayments to contractors and other irregularities, may have cost the system as much as $20 million in each of the past three years." Piltch also reported that more than 300 people failed to pick up their paychecks after auditors forced employees to show identification and sign for their checks.

Posted by AJR at June 26, 2003 07:34 AM