Recovered funds deposited in Teton School District account

Funds recovered by Comerica Bank have been confirmed to be deposited in the Teton School District’s bond account.

The bank announced it had recovered $484,332.66 from a fraudulent online transfer of $784,000 intended for Headwaters Construction. The fraud was discovered when the company did not receive its expected payment as construction manager for six school building projects.

At this time, the school district is unsure whether insurance will pay the balance of the loss or whether more of the stolen funds may be found. School officials are cooperating with FBI investigations, their ICRMP insurance carrier, and financial institutions. The district is also conducting its own investigation.

The school district’s policy now calls for construction payments to be done exclusively with a physical check. In addition, signatures of approval are being required by a school board representative. Vendor representatives are also required to pick up a check and sign for it. District staff will confirm by phone that the check was actually deposited by the vendor.

Superintendent Monte Woolstenhume said the district is also following up on questions and suggestions offered by the public at a Monday work session. Another meeting is planned next Monday that will include the Bank of Commerce and the district’s auditor, Rudd and Company.

That session is set for 5:30 p.m., January 14 and will be livestreamed on the district’s Facebook page.