MS Education Execs Indicted in $650K Fraud

JACKSON, MS – A rot of corruption has been exposed within the Mississippi Department of Education, with former Executive Director Cerissa Renfroe Neal, 45, of Madison County, and three contractors facing federal charges in a sweeping indictment. The charges – conspiracy, wire fraud, money laundering, and bribery – stem from a brazen scheme to siphon over $650,000 from the state, including federal funds earmarked for education.

The indictment, unsealed after being returned by a federal grand jury on February 25, 2020, names David B. Hunt, 54, of Jackson, Tennessee; Joseph Kyles, 51, of Memphis, Tennessee; and Lambert Martin, 59, of Memphis, Tennessee, alongside Neal. U.S. Attorney Mike Hurst minced no words, stating, “Those who defraud the public’s trust will find themselves standing before a court of law to answer for their wrongs… Public corruption erodes faith in our democracy.”

Between 2013 and 2016, while heading the MDOE, Cerissa Neal allegedly orchestrated a scheme to rig bids, fabricate quotes, and manipulate purchase orders. The goal? To funnel contracts to businesses owned by Kyles, Hunt, and Martin at inflated prices. Neal reportedly split large contract requests into smaller ones, bypassing competitive bidding requirements. When legitimate quotes were needed to satisfy department rules, the indictment alleges Neal and her co-conspirators created false, inflated bids designed to guarantee a win for the targeted business.

The scheme wasn’t just about securing the contracts; it was about sharing the spoils. After the Mississippi Department of Education paid the rigged contracts, the indictment details a coordinated effort to distribute the money amongst the conspirators. Neal allegedly received over $42,000 directly or indirectly. Kyles, through The Kyles Company, Hunt, through Doc Imaging (also known as “Hunt Services”), and Martin, through Educational Awareness, collectively pocketed over $650,000 in state and federal funds.

The indictment paints a picture of calculated deceit. Neal, using her position of authority, actively advocated for bids from her co-conspirators. The manipulated bids were designed to appear legitimate, masking the true intent: a blatant theft of public resources. Federal investigators, led by the FBI and the U.S. Department of Education’s Office of Inspector General, have been meticulously piecing together the evidence for months.

Hunt, Kyles, and Martin are scheduled to appear for arraignment on September 10, 2020, before United States Magistrate Judge F. Keith Ball in Jackson at 2:30 p.m. Neal appeared in court for her arraignment on August 19, 2020. This case is a stark reminder that no one is above the law, and those who exploit public trust for personal gain will be held accountable. Mississippi State Auditor Shad White also contributed to the investigation, highlighting the multi-agency effort to expose this alleged corruption.

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