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 The charges come a month after Michigan Governor Rick Snyder named
the federal judge who oversaw Detroit's historic bankruptcy case to
tackle the financial problems of Detroit's schools, which are
drowning under $3.5 billion of debt.
Along with the 13 principals, Norman Shy, owner of Allstate Sales
and an approved school supply vendor for the school district, was
charged in U.S. District Court in Detroit in connection with the
alleged scheme.
Beginning in 2002 and continuing until January 2015, the scheme
involved business with DPS worth about $2.7 million, according to
the U.S. Attorney's Office in Detroit, which worked with the Federal
Bureau of Investigation and the Internal Revenue Service on the
two-year investigation.
The principals and Shy were all charged with conspiracy to commit
bribery under a federal program. The school district received
grants, contracts and other forms of assistance under federal
programs.
 Shy, 74, and one principal were also charged with federal income tax
evasion, officials said.
All of the defendants face up to five years in prison and fines of
up to $250,000 if convicted on the bribery charge, officials said.
Most of the lawyers for the principals and Shy either declined to
comment or could not be reached.
Kim Stout, attorney for Josette Buendia, one of the principals, said
her client worked hard to raise test scores at her elementary school
and spent her own money to help the school. Attorney Tom Cranmer
said his client, Tanya Bowman, a former principal who is among those
charged, has cooperated with the government.
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Doraid Elder, the attorney for another principal charged, Stanley
Johnson, said he had not seen any evidence against his client.
Johnson had donated his own money to buy things for the school
district, he said.
"To say that my client would take $84,000 in kickbacks, we don't
know anything at this point as far as method of payment," Elder
said. "It's up to government to say, 'Hey Mr. Stanley, here is the
evidence.'"
U.S. Attorney Barbara McQuade said the investigation was ongoing.
"The actions of these individuals are reprehensible and represent a
breach of the public trust," said Steven Rhodes, the judge appointed
to run DPS last month.
DPS has suspended all purchasing by individual schools and will
review all vendor contracts, he added.
(Reporting by Serena Maria Daniels; Writing by Ben Klayman; Editing
by Tom Brown and Leslie Adler)
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