Watch CBS News

Businessman Faces Plea Hearing In DPS Corruption Case

DETROIT (AP) — A 74-year-old businessman charged in connection with kickback schemes involving a dozen Detroit Public Schools principals and an administrator is due in federal court.

Norman Shy's arraignment and plea hearing are scheduled Wednesday in U.S. District Court in Detroit.

Shy, of Franklin in suburban Detroit, is charged with conspiracy to commit bribery and tax evasion. His company is accused of receiving $2.7 million from the district.

Federal authorities say the bribery and kickback scheme started as early as 2002. They say fraudulent invoices were submitted by school district employees for chairs, paper and other supplies.

A number of principals already have struck deals with the government and pleaded guilty in the case.

 

Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.