14 CPS workers fired, resigned after being accused of PPP fraud
CHICAGO (CBS) -- At least 14 employees for Chicago Public Schools have been accused of stealing tens of thousands of dollars in federal funds.
According to a report from the CPS Inspector General, the workers filed false statements through the Paycheck Protection Program and lied about supposed small businesses to get pandemic relief loans.
In each case, they fraudulently received up to $21,000.
The Inspector General said most employees earned six-figure salaries and held positions of authority throughout CPS. As CBS 2's Sabrina Franza reported, the office spent months investigating the claims.
Twelve of them have resigned or been fired.
Two others are in the process of being fired.
Investigators built their case by analyzing data to find CPS employees with similar names and addresses as PPP loan recipients.
The IG report found that in each of the 14 cases, the employees claimed to be self-employed. For example, in one case, an employee earning more than $140,000 claimed on the PPP application that they earned $100,000 in 2019 as a chef. That employee has admitted that information was false, according to the report.
"We have people who are in positions of trust and authority, who supervise other people, deal with vendors and contractors, and the federal government isn't going to come and prosecute these cases," said Will Fletcher, the CPS inspector general.
In another case, a worker in the CPS central office who earned $200,000 falsely claimed that they had made $75,000 as a sole business owner in 2020. She received $15,000 in forgivable money. The IG said this employee never filed the required paperwork with CPS disclosing outside income.
Crystal Cooper was the former chief operation officer at CPS. Records show her salary was $220,000, and she received just over $15,000 in PPP money.
"What was surprising was just how many people who earned six-figure salaries and we're willing to commit PPP fraud and jeopardize their career," Fletcher said.
Another worker falsely claimed they earned $100,000 as a barber in 2019 to obtain a PPP loan.
The other cases cited in the report followed a similar pattern.
"We felt that it was important for people to know that someone is holding his people accountable," Fletcher said.
Eight of the employees resigned while four others were terminated - all of them now ineligible for rehire. CPS in a statement said:
"Chicago Public Schools (CPS) greatly values our partnership with the Office of the Inspector General (OIG). As a District, we take seriously our responsibility to serve students and families with integrity and we will hold accountable individuals who breach CPS policies and the public's trust. CPS will continue to ensure our District policies and procedures support the highest ethical standards to ensure our employees act in the best interest of our students and the District."
The Office of the Inspector General told CBS 2 they will refer these cases to law enforcement. A few cases have already been sent.
The office doesn't suspect that the people listed in the report will be held criminally accountable.
