Defendant Name, Crime, State Year

Former Detroit Public Schools vendor Norman Shy and former Assistant Superintendent Clara Flowers have been handed prison time for their roles in an illicit bribery and kickback scheme, announced U.S. Attorney Barbara L. McQuade.

Shy, 74, of Franklin, received a sentence of 60 months, while Flowers, 61, of Detroit, got a 36-month sentence. Both pleaded guilty in May to charges of conspiracy to defraud the United States and tax evasion. The sentencing took place before U.S. District Judge Victoria Roberts.

According to court records, Shy, the owner of Allstate Sales, a DPS vendor of school supplies, conspired with 13 school officials to submit fraudulent invoices, causing DPS to pay Shy for goods that were never delivered. Invoiced supplies included auditorium chairs, supplemental teaching materials, and raised line paper. In exchange, Shy paid bribes and kickbacks to the school officials, using a portion of the payments he received from DPS from the fraudulent invoices. The scheme began in 2002 and continued until January 2014.

Flowers accepted bribes and kickbacks in various forms, including prepaid gift cards and checks payable directly to her travel agency business and contractors who performed work on her home. Shy paid Flowers approximately $324,785.

The total amount of bribes and kickbacks that Shy paid to the 13 school officials was approximately $908,518. In exchange, Shy received approximately $2.7 million from DPS based on payments for fraudulent invoices.

U.S. Attorney McQuade stated, ‘We hope that these sentences will deter anyone who thinks that they can take advantage of a large public institution like the Detroit Public Schools. We will hold accountable anyone who steals funds intended for our school children. If there is a message here, it is that someone is watching, you will get caught and you will go to prison.’

David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, added, ‘Today’s sentencing should serve as a reminder that the FBI will not stand by idly when those in the field of education violate the public’s trust for their own personal gain. The misapplication of already scarce public funds is not only illegal, but an insult to those dedicated educators working every day to make a better future for our children.’

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