Clarke U Bookstore Director Pleads Guilty to $300k Fraud

Former Clarke University Bookstore Director James Spaulding, 35, from Longmont, Colorado, has entered a guilty plea in federal court for mail fraud and filing false tax returns. Spaulding, who served as director between 2011 and 2012, is accused of using a fictitious book supply company to bilk the university out of over $300,000.

In a brazen scheme, Spaulding and an accomplice, T.D., created RVP Wholesale Books, issuing false invoices to Clarke University. They claimed the company supplied books that never arrived, pocketing proceeds totaling more than $302,000. Spaulding then filed fraudulent tax returns for 2011 and 2012, failing to report the illegal gains. His lies to a federal grand jury were also revealed.

Spaulding faces up to 26 years in prison, a fine of $750,000, special assessments, and supervised release following any imprisonment. Sentencing will be determined by Chief Judge Linda R. Reade after a presentence report is completed. The defendant was taken into custody immediately post-plea.

The investigation was led by the Internal Revenue Service-Criminal Investigation and the Dubuque Police Department. Assistant United States Attorney C.J. Williams is prosecuting the case, with court files accessible at https://ecf.iand.uscourts.gov/cgi-bin/login.pl (case number 14-cr-1022).

Spaulding’s actions have cast a shadow over higher education finance, and his fate serves as a stark reminder of the repercussions for white-collar crime. The case underscores the need for vigilant oversight in university financial operations.