ABC7 Found $10M in Unapproved Spending by MCPS Administrators. Board of Education Asleep at the Wheel.

Report raises questions about spending at Montgomery County Public Schools

by Kellye Lynn

Tue, November 25, 2025 at 6:01 AM

Updated Tue, November 25, 2025 at 7:08 AM

MONTGOMERY COUNTY, Md. (7News) — A new inspector general report shows Montgomery County Public Schools (MCPS) failed to get school board approval for more than a million dollars in payments to various vendors.

The review comes just three months after 7News told you thousands of MCPS employees had outdated criminal history checks.

The Montgomery County Office of the Inspector General conducted a review of the school system's procurement process. The report focused on fiscal years 2023 and 2024.

It found the Division of Procurement, which purchases supplies and equipment for MCPS, failed to follow laws, regulations and procedures for expenditures.

For instance, the school system is required to get Board of Education approval for purchases over $25,000, but in several cases, that didn't happen...

“We just saw the State Board of Education determine that the electric school bus bid award was made illegally. How many illegal things are we going to have before there's some prosecution or action?” Janis Sartucci said.

https://wjla.com/news/local/montgomery-county-inspector-general-report-million-without-broad-approval-procurement-review-spending-education-vendor-payments-accountability-jp-morgan-chase-policy-violations-maryland-transparency-oversight

BOE Expense Report Shows Club Dues and Conference Fees of $107,014.

 Board Semi-Annual Expenditure Report.pdf

Board of Education Ignores Transportation Audit Financial Warnings, instead sets up Committee and includes former BOE member who abused MCPS credit card.

The Parents' Coalition filed a Maryland Public Information Act request for the members of the new Board of Education committee on transportation.  

Below is the list of members of this new committee.  It is unclear what this committee is supposed to do as the CESO Audit was very clear on the immediate steps that the Board of Education should be taking with regard to the unsustainable financial issues in the MCPS Department of Transportation.  Setting up a random committee was not one of the steps recommended by the CESO Audit. 

~Included on the Committee is former Board of Education member Chris Barclay who was found to have used his Board of Education credit card for personal expenses.  

At this link is a list of the people Mr. Barclay took out to eat using his Board of Education credit card.

FYI:  The Board of Education members were forced to permanently cut up their credit cards after this scandal.  

~Also listed as being on the Committee is the name of a MCPS administrator referenced in the Beidleman scandal last year.  

Nothing about this committee is in compliance with the immediate recommendations of the CESO Audit.   

Board of Education Transpor... by Parents' Coalition of Montg...

Former MCPS Transportation Director Todd Watkins Sentenced to Probation.

Todd Watkins, the former Montgomery County Public Schools Department of Transportation director, was sentenced Wednesday to 200 hours of community service and will serve three years of supervised probation.

Watkins previously pled guilty to taking advantage of his position as a public official and stealing funds.

Watkins, 56, faced probation to six months in prison for pleading guilty to one count of misconduct.

According to court records, Watkins failed to properly manage the contract for school bus purchases and the use of purchasing cards, enabling Assistant Director of MCPS Department of Transportation Charles Ewald to steal more than $320,000...

Former MCPS Transportation Director Sentenced to Probation - Montgomery Community Media (mymcmedia.org)

MCPS Former Dir. of Transp. Todd Watkins arranged an “off-the-books” system with the bus company--- Watkins received about $13,000 from those payments --- NOT CHARGED WITH THEFT

...State’s Attorney information showed that Watkins arranged with Steve Leonard, the president of American Truck & Bus, to keep late fees and change fee reimbursements rather than returning that money to the school system...

...Watkins arranged an “off-the-books” system with the bus company, and the vendor kept a record of money owed to the school system. The company deducted those owed amounts from its payments from the school system; Watkins received about $13,000 from those payments. The former director provided documentation of those payments and is not charged with theft...

https://wapo.st/3NUzQOn

Former School Transportation Director Charged With Misconduct in Office

Todd Watkins, a former director of transportation for Montgomery County Public Schools, has been charged with misconduct in office.

A pre-indictment plea is set for Friday at 11 a.m.

According to court records, his alleged offense dates back to 2016.

Former MCPS Assistant Director of Transportation Charles Ewald pleaded guilty May 18 to a theft scheme involving more than $100,000 and misconduct in office. He will be sentenced Sept. 6 in Montgomery County Circuit Court.

Ewald, along with Watkins, have been under investigation for using almost $600,000 of MCPS funds for their personal use...

Former School Transportation Director Charged With Misconduct in Office - Montgomery Community Media (mymcmedia.org)

EXCLUSIVE BREAKING: Former MCPS Director of Transportation TODD WATKINS Charged with MISCONDUCT IN OFFICE. ***Charge Dates Back to 2016*** PLEA/Sentence Agreement filed June 23. ***HEARING June 30th***

 

Case Information

Court System:	Circuit Court For Montgomery County - Criminal
Location:	Montgomery Circuit Court
Case Number:	C-15-CR-23-000712
Title:	State of Maryland vs. TODD MICHAEL WATKINS
Case Type:	Criminal - Information
Filing Date:	06/23/2023
Case Status:	Open
Tracking Number(s):	237015000622

---

Defendant Information

Defendant

Name:

WATKINS, TODD MICHAEL

Race:	WhiteSex:MaleHeight:0'0"Weight:0
HairColor:	EyeColor:
DOB:	12/13/1966

Address:	3750 HORINE ROAD
City:	JEFFERSONState:MDZip Code:21755

Attorney(s) for the Defendant

Name:	MCGANN, TERRENCE MICHAEL
Appearance Date:	06/23/2023
Address Line 1:	51 Monroe Street
Address Line 2:	Suite 803
City:	RockvilleState:MDZip Code:20850

---

Involved Parties Information

Plaintiff

Name:

State of Maryland

Attorney(s) for the Plaintiff

Name:	ROSLUND, BRYAN
Appearance Date:	06/23/2023
Address Line 1:	Assistant Stae's Attorney For Montgomery County
Address Line 2:	50 Maryland Avenue
City:	RockvilleState:MDZip Code:20850
Name:	State's Attorney - Montgomery County
Appearance Date:	06/23/2023
Address Line 1:	50 Maryland Avenue
Address Line 2:	5th Floor, North Tower
City:	ROCKVILLEState:MDZip Code:20850

---

Court Scheduling Information

Event Type	Event Date	Event Time	Judge	Court Location	Court Room	Result
Hearing - Pre-Indictment Plea	06/30/2023	11:00:00	McAuliffe, Michael	Chambers Calendar	Courtroom 9D - North Tower

---

Charge and Disposition Information

Charge No:

1CJIS Code:2-0645Statute Code:CL

Charge Description:

MISCONDUCT IN OFFICECharge Class:Misdemeanor

Probable Cause:

Offense Date From:	07/01/2016To:
Agency Name:	Officer ID:

---

Document Information

File Date:	06/23/2023
Filed By:
Document Name:	Criminal Information

---

File Date:	06/23/2023
Filed By:
Document Name:	Attorney Appearance for State

---

File Date:	06/23/2023
Filed By:
Document Name:	Plea/Sentence Agreement

---

File Date:	06/23/2023
Filed By:
Document Name:	Consent Order

---

File Date:	06/23/2023
Filed By:
Document Name:	Summons Issued (Service Event)

---

Service Information

Breaking: How @mcps Administrators Can Embezzle Funds Without Detection. It Would Take MCPS 3 Years to Review Credit Card Bills for Each Cardholder.

In FY 2018, the MCPS credit card bill was $9,817,320.

In FY 2019, one year later, the MCPS credit card bill had just about doubled to $18,020,543.  Why? 

We now know that at the same time the credit card bill was doubling, MCPS education funds were being embezzled and diverted by a vendor to make payments to MCPS administrators, and MCPS credit cards were being misused by administrators. But that embezzlement and misuse wouldn't be discovered for years.  

Is the Board of Education exerting any oversight over MCPS spending?  No they can't. We now know it is virtually impossible for the Board of Education to have any oversight over MCPS spending. 

We filed a simple request for the expense reports for 7 administrators and a list of the cars assigned to each.  MCPS' public information office has responded to us that it would take over 30 hours and over 7 weeks to provide us with these documents for just 7 administrators.

  

At this rate it would take MCPS 3 years to review expense reports for each current credit card holder.  

MCPS has given out credit cards to thousands of employees over the years.  How those credit cards were used is a mystery.  The embezzlement in the MCPS Transportation Department confirms that embezzlement can go undetected for years.  How much more misuse, fraud or waste has occurred in this unmonitored spending of MCPS Operating Budget funds? 

If you want to find out about these 7 administrators, it will cost you $1,298.

FY23-265 10 Day Letter Fee[... by Parents' Coalition of Montg...

Still No Oversight or Prosecution of Embezzlement, But: County Executive Recommends 10-Cent Increase in County’s Property Tax Rate to be Used Exclusively to Fully Fund MCPS Budget Request

Per Montgomery County: Montgomery County Executive Marc Elrich today released his recommended Fiscal Year 2024 (FY24) Operating Budget of $6.8 billion, which is an increase of 7.7 percent from the FY23 approved all funds budget (County Government plus outside agencies.) The recommended FY24 budget reflects record level and significant investments for Montgomery County Public Schools (MCPS), Montgomery College, affordable housing, economic development, public safety, and efforts to combat climate change.

To access the entire recommended FY24 budget, click here. To watch the County Executive’s FY24 recommended budget presentation, click here...

County Executive Recommends 10-Cent Increase in County’s Property Tax Rate to be Used Exclusively to Fully Fund MCPS Budget Request - The MoCo Show

ABC7: Furniture, headphones, tires: OIG finds $133k in illicit spending from MCPS DOT employee

MONTGOMERY COUNTY, Md. (7News) — Charles Ewald was second in charge of MCPS' Department of Transportation.

The division has 1,800 employees and an annual budget of $120 million.

Last fall, Montgomery County's Office of the Inspector General (OIG) dug into Ewald's MCPS charge card statements and found $133,000 in prohibited spending...

Furniture, headphones, tires: OIG finds $133k in illicit spending from MCPS DOT employee | WJLA

Report: MCPS’ Department of Transportation Abused Use of its Credit Cards @mcps @mocoboe

Montgomery County Public School’s Department of Transportation (DOT) abused its use of purchase cards [CREDIT CARDS], according to a 15-page report released Thursday by Montgomery County Inspector General Megan Davey Limarzi.

An earlier internal audit by the school district found “questionable purchases,” including gift cards, furniture, and other purchases that were shipped to an employee’s home.

The Office of Inspector General (OIG) reviewed $570,000 worth of transactions from July 2020 to June 2022 and ruled that $133,000 of these purchases by a former DOT assistant director were prohibited by MCPS policy.

The OIC and MCPS noted that $6,500 was spent on items that were considered not for use by MCPS.

According to the report, “The OIG also found that MCPS DOT management and staff regularly violated MCPS P-Card [CREDIT CARD] policies.”..

Report: MCPS' Department of Transportation Abused Use of its Purchase Cards - Montgomery Community Media (mymcmedia.org)

Breaking: MoCo Inspector General Releases Investigation - Finds Misconduct In MCPS Credit Card Program By MCPS Transportation Staff

OIG Finds Misconduct in MCP... by Parents' Coalition of Montg...

OFFICE OF THE INSPECTOR GENERAL

Megan Davey Limarzi, Esq.

Inspector General

NEWS RELEASE

______________________________________________________________________________

For Immediate Release December 15, 2022

OIG Finds Misconduct In MCPS Purchase Card Program

Rockville, Maryland – Montgomery County Maryland Inspector General Megan Davey Limarzi 

announced today the release of a new Office of the Inspector General (OIG) report of 

investigation, Abuse of Purchase Cards by Montgomery County Public Schools 

Department of Transportation Employees, OIG Publication # 23-006, detailing the results of an

OIG investigation directed at abuses of MCPS’s purchase card program. The investigation was 

initiated in furtherance of the OIG’s mission to prevent and detect fraud, waste, and abuse in 

government activities; and propose ways to increase the legal, fiscal, and ethical accountability 

of County government departments and County-funded agencies.

The OIG analyzed the approximate $570,000 worth of transactions that occurred from July 2020 

to June 2022 through P-Cards assigned to MCPS DOT staff and found approximately $133,000 

in purchases made using P-Cards issued to the former MCPS DOT Assistant Director were 

prohibited by policy. The OIG and MCPS deemed that approximately $6,500 was spent on items 

that were possibly for non-MCPS related use. The OIG also found that MCPS DOT management 

and staff regularly violated MCPS P-Card policies. 

The OIG noted that MCPS took several steps to address program vulnerabilities since allegations 

of misconduct emerged, however opportunities still exist for them to strengthen oversight 

programs. The backstop against program abuses and failures is a strong audit and oversight 

program. The OIG found that MCPS’ P-Card monitoring program is not consistently followed

and P-Card audits of central office departments, like DOT, are not a part of routine audits. The 

OIG made similar observations in a 2016 review and recommended improved oversight. The 

OIG made 5 recommendations as a result of this investigation, some of which are again targeted 

at improving oversight of P-Cards.

The OIG pursued this investigation after consulting with the Montgomery County Police

Department about their investigation of alleged misconduct by the former MCPS DOT Director 

and former MCPS DOT Assistant Director. The OIG shared the results of its investigation with 

the State’s Attorney’s Office.

The full report can be found at 

https://www.montgomerycountymd.gov/OIG/Resources/Files/PDF/IGActivity/FY2023/OIG-23-006.pdf

Please direct all inquiries to: Email: ig@montgomerycountymd.gov Phone: 240-777-8240

WTOP: Audit finds ‘off the books’ account used by vendors to pay Montgomery Co. schools staff

Nearly a year after Montgomery County, Maryland, police reported they were investigating “possible financial improprieties” in the county school system’s transportation department, a new state audit offers details on what generated its investigation.

According to the September 2022 report by the Maryland Office of Legislative Audits, the Montgomery County school system’s own internal audit showed “questionable purchases” for gift cards, furniture and other items shipped to an unnamed transportation manager’s home.

The state audit also reports that Montgomery County Public Schools also discovered an “off the books account” maintained by a transportation vendor outside the control of MCPS’ Office of Finance. The report doesn’t identify the vendor, but states that the account that was used to make payments to several MCPS employees to buy goods and services in a way that was designed to get around the school system’s “established policies and procedures.”..

Audit finds ‘off the books’ account used by vendors to pay Montgomery Co. schools staff - WTOP News

***BREAKING*** $1.2M Deposited in "Off the Books" account used to make payments to MCPS employees from 2017-2021*** AND *** $572K in Questionable Credit Card Purchases by MCPS Staff from 2016-2022.

 

    ...In September 2021, MCPS’ Procurement Department identified questionable purchases through its normal review of credit card activity, which was referred to MCPS’ Internal Audit Unit in accordance with MCPS’ Policy for Reporting and Handling Fraudulent Actions by MCPS Employees, Agents, or Contractors. 

MCPS’ Internal Audit Unit conducted a limited review in October 2021 of a 

transportation management employee’s credit card activity. The Internal Audit 

Unit issued a report dated November 17, 2021, which identified questionable 

purchases (such as gift cards, furniture, and purchases shipped to the employee’s

home) made by the management employee. 

    MCPS further discovered the existence of an account maintained by a transportation vendor outside the control of MCPS’ Office of Finance that was funded with amounts owed to MCPS. This “off the books” account was used to make payments to several MCPS employees and to purchase goods and services circumventing MCPS’ established policies and procedures. Specifically, the account was funded with amounts due to MCPS for liquidated damages resulting from the transportation vendor failing to deliver goods timely and credits for certain items included in the original bus procurement contract and paid for that were subsequently cancelled. 

    Based on the results of the internal audit and the discovery of the account maintained by the vendor, MCPS reported the questionable activity to the Montgomery County Police Department. Additionally, MCPS hired an accounting and advisory firm in December 2021 to conduct an independent forensic investigation of the aforementioned account and certain transactions during the period from July 2016 to January 2022. 

    In February 2022, the firm issued a report which identified that approximately $1.2 million had been deposited in the account and that payments totaling approximately $649,000 were made either directly to MCPS employees or for purchases of goods and services purportedly on behalf of MCPS during the period from October 2017 to November 2021. As of November 16, 2021, the account had a balance totaling $535,036. The firm also reviewed MCPS credit card purchases during the period July 2016 to January 2022 and identified purchases totaling approximately $572,000 made by transportation department employees that were considered questionable or required additional review. The firm stated in the report that additional work would be necessary to fully investigate the aforementioned activity. 

    On November 15, 2021, MPCS placed two transportation management employees on administrative leave pending investigation into the questionable purchases. One of the employees was subsequently terminated in February 2022 and the other employee resigned in March 2022. 

    As of April 7, 2022, we were advised by MCPS management that MCPS, the Montgomery County Police and State’s Attorney Office, were still conducting investigations related to these issues. Specifically, MCPS was pursuing collection of the credit balance totaling $535,036 with the transportation vendor, was modifying its process for purchasing buses, and developing procedures for how it accounts for changes to bus specifications; including ensuring that credits from 13 vendors are handled properly. Furthermore, MCPS management advised us that it provided training on proper credit card usage, decreased credit card purchasing limits as necessary, and eliminated credit cards based on limited or no purchasing activity. Finally, MCPS was planning to further review certain questionable credit card purchases identified by the firm...

UMD: The total amount of the theft is $1,134,887.66. If convicted, Schuetz faces up to 20 years in prison and a fine of up to $25,000.

ANNAOLIS, Md. (7News) — Maryland State’s Attorney Aisha Braveboy Wednesday announced that former University of Maryland employee Lisa Schuetz, of Severn, Md., was indicted for one count of theft of over $100,000 and a lesser included count of theft between $1,500 and $250,000.

A University of Maryland police investigation uncovered evidence that from 2016 to 2020, Schuetz abused her official position and purchasing authority by engaging in a scheme to defraud the University of Maryland between 2016 and 2020...

https://foxbaltimore.com/news/local/former-umd-employee-indicted-for-theft-of-more-than-100k-defrauding-university-maryland-terps-terrapins-college-park-steal?fbclid=IwAR04iYHnSZfYCZgSFAaJK9ATiEpjrxoSHLAaI8zWxesKCggbufaOx0HLqQM

"Todd Watkins had no idea he’d become famous because of a school bus transaction."

Todd Watkins had no idea he’d become famous because of a school bus transaction.

Watkins made headlines as the Director of Transportation for Montgomery Public Schools in Maryland when he decided to replace his district’s diesel school buses with cleaner, electric ones. Unbeknownst to him, the contract he signed with Highland Electric Transportation in February to lease 326 vehicles for four years and eventually replace the whole 1,422 vehicle fleet turned out to be the single largest purchase of electric school buses in the United States...

...Watkins’ district reached a budget-neutral agreement thanks to a fixed-cost finance approach in which the community pays an average of $43,000 per bus each year for the equipment’s 12-year lifespan rather than paying the whole cost upfront. On the other hand, Highland Electric pays all additional costs, from energy to maintenance, and reaps the advantages of any government incentives and decreased fuel costs associated with electrification. Watkins hopes to spread the news about this strategy to other schools or parties that are interested...

https://mysteriousofscience.com/new-the-maryland-school-system-converted-to-electric-buses/

Nov. 3, 2021: MCPS Director of Transportation & Staff on Conference Tour for Private Company

 

Two MCPS administrators on leave as police investigate 'possible financial improprieties'

by Kevin Lewis, Montgomery County Reporter (7News)Tuesday, November 16th 2021

DERWOOD, Md. (7News) — Montgomery County Public Schools has placed two management-level employees on leave after being made aware of "possible financial improprieties."

The school system has confirmed Department of Transportation Director Todd Watkins and DOT Assistant Director Charles Ewald are both on administrative leave. MCPS declined to clarify when it placed Watkins and Ewald on leave and if it continues to pay both of them...

https://wjla.com/news/local/two-mcps-administrators-on-leave-as-police-investigate-possible-financial-improprieties

According to a source, both Watkins and Assistant Director Charles Ewald are under investigation concerning “a $600K discrepancy in terms of credit card abuse.”

TOP LEADERS OF MCPS TRANSPORTATION ON LEAVE PENDING FINANCIAL INVESTIGATION

At least two staff members at the Montgomery County Public Schools Department of Transportation are under investigation by the Montgomery County Police Department concerning “allegations of possible financial improprieties,” according to MCPS Director of Communications Christopher Cram.

“We take these allegations very seriously, and as a result, we immediately contacted the police to investigate,” Cram wrote in a statement.

A reply to an email request for comment from Todd Watkins, director of transportation, noted, “I am currently out of the office on leave.” There was no mention of when he would return...

https://www.mymcmedia.org/top-leaders-of-mcps-transportation-on-leave-pending-financial-investigation/

FOX5 Exclusive: Top Montgomery County schools executive lives in Georgia

 MONTGOMERY COUNTY, Md. - One of the highest paid employees in Montgomery County Public Schools has taken working from home to a new level, moving to Georgia last summer, according to real estate records...

https://www.fox5dc.com/news/exclusive-top-montgomery-county-schools-executive-lives-in-georgia