Daryl Glenn Johnson, Warehouse Fraud, Texas 2014

BEAUMONT, Texas - In a shocking turn of events, three former Beaumont Independent School District employees have been sentenced for their roles in a massive warehouse fraud scheme, announced U.S. Attorney John M. Bales today.

The scheme, which ran from July 2009 through June 2012, involved the fraudulent payment of over $284,000 to Daryl Glenn Johnson, 44, of Beaumont, who was employed as the warehouse supervisor for the school district. Johnson's wife, Erin Gipson Johnson, 38, and a friend, Kailyn DeShondra Pete, 25, both of Beaumont, were also involved in the scheme, though neither actually worked as a BISD warehouse employee.

According to information presented in court, Daryl Johnson had the autonomy to hire temporary warehouse employees on his own and determine how many hours they would be paid, all without the knowledge or authorization of anyone else. Johnson used this authority to fraudulently verify that both Erin Johnson and Kailyn Pete worked the hours indicated on their respective timesheets, which included extensive amounts of overtime when they knew they hadn't worked any of the hours.

Erin Johnson was paid $193,998.37 from July 2009 through May 2011, while Kailyn Pete was paid $90,041.05 from June 2010 through May 2012. Daryl Johnson was ordered to pay $284,039.42 in restitution, and is jointly and severally liable with his wife for $193,998.37 and with Kailyn Pete for $90,041.05.

Daryl Johnson pleaded guilty to conspiracy on Dec. 4, 2014, and was sentenced to 33 months in federal prison today by U.S. District Judge Ron Clark. Erin Gipson Johnson and Kailyn DeShondra Pete each pleaded guilty to fraud upon programs receiving federal funds on Dec. 4, 2014, and were sentenced to 5 years probation by Judge Clark.

The case was investigated by the joint Task Force with the Jefferson County District Attorney's Office, the Beaumont Police Department, and the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorneys Joe Batte and Christopher T. Tortorice.

This is a developing story, and we will provide updates as more information becomes available. In the meantime, the people of Beaumont can rest a little easier knowing that justice has been served in this case.

Source: https://www.justice.gov/usao-edtx/pr/three-former-beaumont-isd-employees-sentenced-warehouse-fraud-scheme