Five Major Charges Alleged in Grand Jury Investigation March-April 2012

By Viola Davis RN BSN

1) Lack of Regular Background Checks on Employees a) Case of Bobbie Neil Ward worked at Cedar Grove Middle School as a secretary until her arrest in March 2012. Ms. Ward had previously been arrested in DeKalb County in 2005, however was permitted to work within school system. Ms. Ward was indicted in March 2012 on 29 counts, including abuse of disabled adults, aggravated assaults, identity fraud and exploitation of the elderly. 2) Poor Fiscal Responsibility a) The Grand Jury asked each member of the Board if they would agree to a forensic audit of the entire school system, with the goal being to uncover any potential financial landmines, and to ensure that proper checks and balances were in place. The Board members in favor of the forensic audit were Nancy Jester, Don McChesney, Jay Cunningham, Sarah Copelin-Wood, Paul Womack, Tom Bowen, Donna Edler, and Pam Speaks. The Board member against the forensic audit was Gene Walker. b) The Board voted for a forensic audit; however, the Board was unable to provide specifics of the audit such as the scope and goals of the audit. 3) Overcharged for Legal Representation a) The school system and Board retain two law firms as outside counsel to include: Alexander and Associates and Sutherland, Asbill & Brennan. When asked why the Board hired two legal firms, Sarah Copelin-Woods revealed that the Board wanted to have a minority-owned firm representing the schools and Board because they understand the culture of the kids. b) Board refused to hire a law firm with a bid which was more than $400,000 lower than the bid submitted by Sutherland, Asbill & Brennan despite the fact that the firm specialized in education law and represents school systems of Fulton, Cobb, and Clayton Counties in Georgia. c) The Board had no policies or procedures for what the law firms representing the school system and the Board can and cannot charge for (e.g., excessive conferences between attorneys, excessive legal research, copying charges, excessive number of attorneys participating in conferences calls and meetings, etc.). 4) Bad Policies and Procedures 1

a) Mr. Womack stated approximately $450,000 in Title 1 Federal Funds was used to purchase textbooks without approval of the Board. b) Mr. Eugene Walker stated a $450,000 purchase with Title 1 Federal Funds did not violate Board policies; however, Mr. Womack strenuously disagreed with Mr. Walkers position. c) The Board was asked if they had approved the payment of $100,000 to Crawford Lewis legal defense as part of the Boards Liability Protection for Employees and Board Members policy and all members responded affirmatively. d) The policy explicitly states that it is intended to help defend: See attached policy 5) Poor Oversight of Heery/Mitchell Legal Matters a) Mr. Womack indicated that he was in possession of evidence showing $18 million or more in fraud, specifically related to false time sheets that were paid to Heery/Mitchell. b) According to Deputy Chief Assistant District Attorney, John Melvin, this evidence was never offered to the District Attorneys Office. The Grand Jury urged Mr. Womack to provide this information to District Attorneys Office immediately. c) According to Mr. Womack, an audit of the Heery/Mitchell relationship was undertaken prior to filing the counter suit. Mr. Womack was unable to recall the actual cost of the audit, although he estimated it to be over $1 million. Many Board members were unaware that his audit had ever taken place. d) According to Mr. Bowen, the $110 million counter suit filed against Heery/Mitchell by the BOE was intended to pay the school system back for correcting errors made with schools that had been built. i) It was estimated that the actual cost of the repairs and building would be the total cost of $180 million, thus leaving a deficit of $70 million dollars. ii) The Board failed to request Heery/Mitchell pay attorneys fees as part of the settlement, and at last count approximately $18 million paid to King & Spalding and an additional $19 million of fees was currently accrued. The total for accrued legal expenses was $37 million. iii) So even a successful judgment in this case would appear to create a deficit of approximately $107 million to include $70 million in repairs and building projects + $37 million in legal expenses. e) A contingency agreement with King & Spalding was never placed in writing. Mr. Walker responded it would be a good idea. The Grand Jury did not understand why the Board did not place the contingency agreement in writing. f) Mr. Walker & Mr. Bowen attended a mediation session with Heery/Mitchell in an attempt to settle the lawsuit. Mr. Walker was unwilling to provide any details because the discussions of the proposed settlement had been discussed in an Executive Session. The Grand Jury believes that the citizens of DeKalb County have a right to know what the proposed settlement was.