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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. Can I get this form on line,if not where can I obtain one. I am eligible.

  2. What a fine example of the best of the Hoosier tradition! How sad that the AP has to include partisan snark in the obit for this great American patriot and adventurer.

  3. Why are all these lawyers yakking to the media about pending matters? Trial by media? What the devil happened to not making extrajudicial statements? The system is falling apart.

  4. It is a sad story indeed as this couple has been only in survival mode, NOT found guilty with Ponzi, shaken down for 5 years and pursued by prosecution that has been ignited by a civil suit with very deep pockets wrenched in their bitterness...It has been said that many of us are breaking an average of 300 federal laws a day without even knowing it. Structuring laws, & civilForfeiture laws are among the scariest that need to be restructured or repealed . These laws were initially created for drug Lords and laundering money and now reach over that line. Here you have a couple that took out their own money, not drug money, not laundering. Yes...Many upset that they lost money...but how much did they make before it all fell apart? No one ask that question? A civil suit against Williams was awarded because he has no more money to fight...they pushed for a break in order...they took all his belongings...even underwear, shoes and clothes? who does that? What allows that? Maybe if you had the picture of him purchasing a jacket at the Goodwill just to go to court the next day...his enemy may be satisfied? But not likely...bitterness is a master. For happy ending lovers, you will be happy to know they have a faith that has changed their world and a solid love that many of us can only dream about. They will spend their time in federal jail for taking their money from their account, but at the end of the day they have loyal friends, a true love and a hope of a new life in time...and none of that can be bought or taken That is the real story.

  5. Could be his email did something especially heinous, really over the top like questioning Ind S.Ct. officials or accusing JLAP of being the political correctness police.

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