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State sues ex-school chief, seeks $615,000

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The former superintendent of a small southern Indiana school system owes the district more than $615,000 in public money that he misappropriated, according to a lawsuit filed by Indiana Attorney General Greg Zoeller’s office.

Marion “Al” Chapman was fired as superintendent of Cannelton City School Corp. in December 2011, after more than six years in the position. The State Board of Accounts this month released an audit that revealed misappropriation including:
-- $206,688.27 Chapman authorized payments to himself beyond his contract through payroll or annuities;
-- $333,333.33 gifted to the school as a trust intended to fund high school improvements but instead was depleted to pay general fund operating expenses;
-- $50,185.64 in attorney fees stemming from Chapman’s discontinuation of paying taxes;
-- $9,000 in unallowed prepaid travel allowances, and;
-- $1,241 in penalties, late fees and charges the schools accrued under Chapman’s leadership.

Chapman also is asked to pay the $15,157.89 cost of the audit in the civil suit filed in Perry Circuit Court.

The lawsuit also asks for an injunction to freeze Chapman’s assets, including bank and retirement accounts and vehicles. Perry Circuit Judge Lucy Goffinet on Friday signed a temporary restraining order and scheduled a hearing for Aug. 30 on the state’s motion for a preliminary injunction, a statement from the AG’s office said.

“The amount that the audit found misappropriated is simply shocking even without the misuse of a trust fund gift worth one-third of a million dollars; but what’s truly disheartening is that a top school official – a person to whom teachers, students and parents ought to look to for leadership – has drained public school funds intended for children’s education in order to overpay himself. This is a betrayal of the public trust, and my office will use all our legal tools to make this individual reimburse the school system,” Zoeller said in a statement.

The lawsuit also names as a defendant Indiana Insurance Company, which carried a $1 million errors and omissions policy on Chapman. The suit seeks to collect on the policy to reimburse the school system for the loss.

With 240 students enrolled last year, Cannelton City Schools is the second-smallest non-charter public K-12 school system in the state, according to Indiana Department of Education data.

 

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  1. "So we broke with England for the right to "off" our preborn progeny at will, and allow the processing plant doing the dirty deeds (dirt cheap) to profit on the marketing of those "products of conception." I was completely maleducated on our nation's founding, it would seem. (But I know the ACLU is hard at work to remedy that, too.)" Well, you know, we're just following in the footsteps of our founders who raped women, raped slaves, raped children, maimed immigrants, sold children, stole property, broke promises, broke apart families, killed natives... You know, good God fearing down home Christian folk! :/

  2. Who gives a rats behind about all the fluffy ranking nonsense. What students having to pay off debt need to know is that all schools aren't created equal and students from many schools don't have a snowball's chance of getting a decent paying job straight out of law school. Their lowly ranked lawschool won't tell them that though. When schools start honestly (accurately) reporting *those numbers, things will get interesting real quick, and the looks on student's faces will be priceless!

  3. Whilst it may be true that Judges and Justices enjoy such freedom of time and effort, it certainly does not hold true for the average working person. To say that one must 1) take a day or a half day off work every 3 months, 2) gather a list of information including recent photographs, and 3) set up a time that is convenient for the local sheriff or other such office to complete the registry is more than a bit near-sighted. This may be procedural, and hence, in the near-sighted minds of the court, not 'punishment,' but it is in fact 'punishment.' The local sheriffs probably feel a little punished too by the overwork. Registries serve to punish the offender whilst simultaneously providing the public at large with a false sense of security. The false sense of security is dangerous to the public who may not exercise due diligence by thinking there are no offenders in their locale. In fact, the registry only informs them of those who have been convicted.

  4. Unfortunately, the court doesn't understand the difference between ebidta and adjusted ebidta as they clearly got the ruling wrong based on their misunderstanding

  5. A common refrain in the comments on this website comes from people who cannot locate attorneys willing put justice over retainers. At the same time the judiciary threatens to make pro bono work mandatory, seemingly noting the same concern. But what happens to attorneys who have the chumptzah to threatened the legal status quo in Indiana? Ask Gary Welch, ask Paul Ogden, ask me. Speak truth to power, suffer horrendously accordingly. No wonder Hoosier attorneys who want to keep in good graces merely chase the dollars ... the powers that be have no concerns as to those who are ever for sale to the highest bidder ... for those even willing to compromise for $$$ never allow either justice or constitutionality to cause them to stand up to injustice or unconstitutionality. And the bad apples in the Hoosier barrel, like this one, just keep rotting.

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