Fraud costs Teton School District over $784,000

UPDATE:

In a statement Wednesday, School Board Chairman Chris Isaacson and Superintendent Monte Woolstenhume explained the stolen funds were part of the construction-process school-bond account.

The district’s insurance carrier, Idaho Counties Risk Management Program (ICRMP) is investigating the case, along with the FBI and local law enforcement officials. They said the school district is also investigating the incident internally.

The district’s statement added, “a disturbing event like this hits hard at a small community like ours, because everyone is closely connected to the success of the school district, as parents, taxpayers, employees, and volunteers. However, in an ongoing investigation, few details can be released as we cooperate with the authorities. We will let the community know what we can share as soon as it is legally possible to do so.”

The district said it would operated with financial transparency and take additional safety measures, as needed, to protect funds entrusted to the school district.

ORIGINAL STORY:

The FBI field office in Salt Lake City is investigating a major fraud against the Teton School District.

The Teton County, Idaho Sheriff’s Office says District 401 officials notified law enforcement of the theft of over $784,000 last Thursday.

According to initial reports, the district was attempting to pay the account of Headwaters Construction, which is building a new elementary school for the district in Victor.

But, the school district was given fraudulent account numbers. Officials did not learn of the fraud until the money had already been transferred.

The Sheriff’s Office has collected e-mails and other documents related to the case. All of that material is being turned over to the FBI for further investigation.

So far, there has been no comment from the school district administration. The school board has scheduled a special executive session Friday morning.