Alabama wants $5.7 million in fraudulent virtual school payments back from defendants

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The Alabama Department of Education wants defendants convicted in a virtual school scheme to pay back $5.7 million in state payments for private school students fraudulently enrolled as public school students.

Attorneys for the federal government and for the five defendants submitted a joint plan to repay that money late last week. The plan is still pending approval from a federal judge.

The plan calls for former Athens City Superintendent Trey Holladay to repay $2.9 million, retired teacher Greg Corkren to repay $1.3 million and former Marengo Academy football coach David “Webb” Tutt to repay $259,000.

Athens City administrator William “Rick” Carter, convicted in March, would be responsible for $1.3 million in repayments under the plan, but attorneys noted Carter has not agreed to the plan. Carter’s attorneys have asked for a new trial.

Read more Ed Lab: Alabama isn’t doing enough to solve teacher shortages, board member says.

Former Limestone County Superintendent Tom Sisk, who pleaded guilty to conspiracy, would not pay any restitution under the submitted plan.

The defendants claimed private school students around the state were enrolled full time in public Athens City and Limestone County schools. The systems received state funds for those students.

Four of the five defendants pleaded guilty last year. Sentencing is set for June 28.

The state department of education said Athens City Schools received $5.7 million in state Foundation Program funding for the 2016-17 and 2017-18 school years for students defendants enrolled as public school students when they were actually enrolled in private schools.

ALSDE wrote that the state Foundation Program funded $3.1 million for 894 private school students for the 2016-17 school year and $2.6 million for 573 private school students for the 2017-18 school year.

The ALSDE wrote it already recouped funds from Limestone County and Conecuh County that it paid, but did not state the amounts.

In separate actions, the court recently ordered defendants to forfeit money they received fraudulently, in the following amounts:

  • Holladay - $185,770
  • Sisk - $13,000
  • Tutt - $186,154
  • Corkren - $679,595

Holladay voluntarily surrendered his certificates to teach in Alabama according to state department documents released last week.

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