Showing posts with label fraud. Show all posts
Showing posts with label fraud. Show all posts

Tuesday, November 25, 2025

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

Monday, November 18, 2024

‘Our current path is not sustainable’: Montgomery Co. schools superintendent, council look at challenges to school funding

Montgomery County’s Superintendent of Schools Thomas Taylor told the county council that he’s focused on the tough fiscal picture ahead for the school system that educates more than 161,500 students.

“What is clear in my examination of the budget, and as illustrated in the data that you have before you today, is that our current path is not sustainable,” Taylor said at a county council work session on Tuesday.

Taylor and Board of Education President Karla Silvestre were among the school officials at the work session on the school system’s “cost drivers” — expenses that fuel the budget.

Craig Howard, the county council’s new executive director, explained that over a period of 10 years, FYs 2015-25, the operating budget grew by 3.9% on average each year.

In June, the county council approved a $3.3 billion operating budget for FY 2025.

Noting that nearly 90% of the operating budget is spent on staffing, Taylor said, “The system must engage in a thorough reevaluation of resource allocation.”..

‘Our current path is not sustainable’: Montgomery Co. schools superintendent, council look at challenges to school funding - WTOP News

Monday, September 23, 2024

County school board candidates discuss budgets, school security in forum


 ...District perception  

One question about the perception of MCPS spurred conversations around student and school performance and the reason for declining trust in the district.  

Harris blamed unfavorable perceptions of MCPS on only bad news being reported, noting the school system is struggling with similar challenges that other districts also are facing, like the increased needs of students that require more educational resources.  

“We are very honestly struggling to meet the needs of the current generation of learners,” Harris said. “This is a school system that is still trying to catch up to reality.”  

Diaz said she would empower all teachers to give students the grades they deserve and eliminate grade inflation.  

Evans said the district and board members needed to be out in the community more so people can understand what’s going on in the district. “We have some wonderful legislators that have put forth [the Blueprint for Maryland’s Future] that is going to allow us to ensure that our teachers are paid more,” said Evans, noting the 2021 landmark education reform legislation passed by the Maryland General Assembly. 

Montoya said she still believed in the quality of the school district but added that test scores and safety incidents are creating concerns among families.  

“So I think that when we talk about addressing these issues, what we’re talking about is rebuilding that trust,” Montoya said. “[To] spend wisely, invest in proven approaches, to close the gap and have a healthy balance between mental health support and adequate law enforcement coverage.”..

County school board candidates discuss budgets, school security in forum   | MoCo360

Thursday, May 23, 2024

Board of Education Considers Cutting 143 Teaching Positions

Montgomery County councilmembers were told Thursday morning that Montgomery County Public Schools (MCPS) is considering laying off 143 teachers to make its budget work, according to Councilmember Will Jawando.

Board of Education members also are considering not hiring 177 people who were offered contracts as long as they graduated college, although they were not told which school they would be assigned. Those positions may be rescinded, Jawando said in a statement following the council’s approval of a $7.1 billion budget for Fiscal Year 2025, which begins in July...

https://www.mymcmedia.org/board-of-education-considers-cutting-143-teaching-positions/

Tuesday, December 5, 2023

MCPS Principal sexually harassed female employees to the point they changed their appearances to avoid attention, report says

 


"Those complaints alleged, among other things, acts of bullying, retaliation, sexual harassment and unfair hiring practices," the investigation reads.

MONTGOMERY COUNTY, Md. — Years of bullying, sexual harassment and a culture where some staff felt threatened, are just some of the findings of an investigation into the former Montgomery County Public Schools Principal Joel Beidleman, according to a recently released report. 

In September, the Office of the Montgomery County Inspector General (OIG) announced that it would open two investigations related to allegations against Farquhar Middle School Principal Dr. Joel Beidleman and Montgomery County Public Schools (MCPS) handling of misconduct complaints. Officials claimed he was unanimously promoted during a June meeting to become the principal at an area high school – all while being under investigation for sexual harassment...


//www.wusa9.com/article/news/local/maryland/investigation-misconduct-former-mcps-principal-dr-joel-beidleman-released/65-f43e0399-bfcc-4744-8519-76b62ef38588

Thursday, March 16, 2023

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

Sunday, December 18, 2022

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

Wednesday, October 19, 2022

PCMC Exclusive: County Council candidate and former Planning Board commissioner Natali Fani-Gonzalez under review for possible false property tax exemption claim and tax evasion

A supervisor at the Maryland Department of Assessments and Taxation has confirmed that the property tax account for County Council candidate Natali Fani-Gonzalez and her husband, Angel Gonzalez, is under review for illegal receipt of 100% tax exemption following a greatly exaggerated military disability claim.

Based on submission of their claim of 100% military disability for Mr. Gonzalez to SDAT in 2017, the couple has been exempt from payment of property taxes on their Montgomery County home for the past six years. State law provides for this exemption only for 100% disabled military veterans; any lesser disability percentage does not qualify a veteran for any property tax exemption at all.  (A partial tax credit is available under property tax code § 9-265 to veterans in some counties (but not Montgomery County) with at least 50% military disability but that's entirely different from an exemption.)  Generally, 100% disability status is granted only if a veteran is so disabled that he or she requires round-the-clock care. Even loss of several limbs does not automatically qualify a veteran for 100% disability.

According to court documents obtained from the US Court of Appeals for Veterans Claims, Mr. Gonzalez is, at worst, 30% disabled.

Veteran’s disability application procedures generally confer a temporary, interim status of 100% disability while the claim is being reviewed. However, this status is quickly adjusted to the actual disability rating after review by the disability board. Mr. and Mrs. Gonzalez apparently never advised SDAT the Mr. Gonzalez’s temporary disability rating had been reduced to 30% or less, which has enabled them to continue to improperly receive 100% exemption from property taxes.

Even though Mr. Gonzalez is apparently able-bodied enough to go bicycle riding, as illustrated by a photo on Mrs. Fani-Gonzalez’s campaign web page, he has continued to pursue his 100% disability claim. Mr. Gonzalez even went so far as to claim traumatic brain injury, but the court rejected his claim.

From 2017 to 2022, Mr. and Mrs. Gonzalez have avoided paying approximately $22,000 of property taxes though their false claim of 100% military disability.

See: MD Code, Tax - § 7-208. Disabled veteran or spouse's home.

CLICK ON THE IMAGES BELOW TO ENLARGE.

The entire court decision can be obtained (for free) from:

https://efiling.uscourts.cavc.gov/cmecf/servlet/TransportRoom?servlet=CaseSearch.jsp

Enter case #20-4067 and click on the entry from 5/5/2022.








100% disabled Angel Gonzalez on a bike ride with Natali


SDAT assessment record showing EXEMPT status


Recent property tax bill showing no taxes, just solid waste and WQPC fees (which are not taxes). This saved Natali about $4000 per year.









Tuesday, May 3, 2022

Baltimore City student misses first 140 school days, marked present and passes classes

BALTIMORE (WBFF) — Another scandal hits Baltimore City Public Schools, as Project Baltimore exposes how a student missed the first 140 days of school but was somehow marked as present and passing classes.

“I’m excited for him,” said Latasha Phillips, as her son prepared for his first day of eleventh grade on the 141st day of the school year. “I’m just glad he’s not sitting here all day, not being productive.”

Her son, Qwantay Spearman, has physical disabilities. He attends ConneXions, a charter school in West Baltimore, where he’s thrived, earning a 3.7 grade point average, until this year.

Qwantay missed the first 140 days of school because Baltimore City Schools could not provide him with a nurse, which is required under his federally mandated IEP or Individualized Education Program...

https://foxbaltimore.com/news/project-baltimore/baltimore-city-student-misses-first-140-school-days-marked-as-present-and-passes-classes?fbclid=IwAR1kUiskjAphZiUQ25RiCfGtXI2UGmpilkeUUmLHb6N8dXFcv5pOlByp6J8

Tuesday, February 22, 2022

145 Baltimore County school buses fail inspection, following Project Baltimore report

Baltimore County, MD (WBFF) — Project Baltimore has learned of more Baltimore County school buses that had bad parts. Fox45 News initially reported on fives buses with issues, but that number is now nearly 150 buses, according to inspections conducted by the Maryland Department of Transportation...

https://foxbaltimore.com/news/project-baltimore/145-baltimore-county-school-buses-fail-inspection-following-project-baltimore-report

Wednesday, February 17, 2021

MD Grade Changing Investigation: Balt. City Schools Alerts 90,000 Students That Records Subpoenaed


BALTIMORE (WBFF) - Baltimore City Public Schools is in the process of alerting thousands of parents that their children’s grades have become part of a state grade changing investigation.

On January 25th, North Avenue sent a letter to thousands of Baltimore families. More letters are scheduled to go out in the coming days. The letters explain how City Schools was served a subpoena in a grade changing investigation, and their children's records are now involved. The subpoena was issued by Maryland’s Inspector General of Education, Rick Henry...

https://foxbaltimore.com/news/project-baltimore/grade-changing-investigation-city-schools-alerts-90000-students-that-records-subpoenaed?fbclid=IwAR3Grp9vyF4JuYJx24hDUTFWPiRxrzLQWm2jEkU43sTlTLlsMNA3upaTFSg


MARYLAND OFFICE OF THE INSPECTOR GENERAL FOR EDUCATION

Richard P. Henry, Inspector General (appointed by Governor, Attorney General & State Treasurer to 5-year term with Senate advice & consent), 2025

100 Community Place, 4th floor, Crownsville, MD 21032
(410) 697-9692
e-mail: richard.henry@maryland.gov

To report educational fraud, waste, & abuse: 1-844-OIGETIP
e-mail: oige.tips@maryland.gov

https://msa.maryland.gov/msa/mdmanual/25ind/html/47inspect.html

Thursday, October 1, 2020

Montgomery College Releases Details of Fraud Scheme Perpetrated in September 2019 Including Independent Audit Findings, Net Losses of $1.7M

 


  • In September of 2019, Montgomery College (MC) was the victim of a targeted cybersecurity attack from entities outside the College. The intrusion, classified as cyber fraud, allowed funds to be stolen and placed in a fraudulent bank account. In a memorandum issued this morning to MC employees, students, and constituents, College officials outlined the total loss of the crime, additional details of the crime, the independent financial auditor’s findings, and several of the additional control measures the College has taken to ensure attacks like this are dealt with accordingly.

    The financial audit for the fiscal year 2020, which ended June 30, has now been closed. Clifton Larson Allen (CLA), the certified public accounting firm hired to perform our annual financial statement audits, issued its opinion September 30, 2020.

    The original amount of loss was $2.8 million—an amount that was invoiced by a legitimate vendor. Appropriate controls were adhered to by MC’s staff in multiple departments to verify the legitimacy of the invoicing. However, criminals manipulated a process that allowed the diversion of payments to a fraudulent bank account.

    Because the College acted quickly, $1.1 million—39 percent of the loss—has been recovered. The College has worked diligently with law enforcement agencies and its bank to pursue the perpetrators and restore the funds. The College immediately took action after the incident, completing a thorough internal investigation and working tirelessly with the FBI, banking partners, accreditors, and Montgomery County’s inspector general. The College communicated the fraud incident to both the internal College community and to local media.

    Several new internal controls were put in place immediately following the incident, including fraud awareness training, which was delivered to almost 300 employees at the College over three months. The College’s cybersecurity training, which also strengthens employee vigilance around attempted intrusions, has been taken by more than 2,000 employees in the last 13 months. The College continues to provide trainings that strengthen employees’ skills at fraud detection in an effort to protect the institution from future attacks. In addition, the College hired a separate accounting firm, independent of CLA, to perform an audit of its financial controls as well as an audit of vendors and contracts management. This audit concluded in August 2020 and provided additional recommendations for financial controls and vendor management.

    The College’s net loss of $1.7 million represents 0.5% of the College’s fiscal year 2020 budget. The financial loss did not and is not preventing the College from continuing standard operations. As of this time, MC has no new information from the FBI related to its criminal investigation. These types of investigations can take several years and are sometimes connected to wider networks of fraudulent activity. There is no evidence that any College employees were involved in the fraud scheme and MC employees remain the most valuable assets in fraud prevention.

    Although the College was a victim in this fraud scheme it is taking this opportunity to affirm the longstanding commitment to sound financial practices and to any improved protocols that might grow out of the investigations. The College is still hoping to recover more of the stolen funds through ongoing investigations. Given MC’s strong fiscal stewardship, it is able to manage this loss within the budget and will not ask the county or state to make up for the lost funds.

    This experience has been a lesson in the sophistication that criminals have developed around fraudulent incursions and a reminder that Montgomery College and its stakeholders must all remain vigilant.

Monday, April 20, 2020

Jack Smith contract litigation from Calvert County. Now Smith is withholding $800K Contract Term from MoCo Board of Ed.

Let's review what happened when Jack R. Smith was the Superintendent of Calvert County Public Schools. 
SoMdNews Online
March 5, 2015
...Members of the Calvert board of education claim they were unaware of the executive team contracts held between the employees and Smith and said because the contracts were signed with Smith and not the board, the provisions stated in the contract were not to be extended past the June 30, 2013, date...
SoMdNewsOnlineSeptember 2, 2015
...At the end of the 2013 school year, Smith announced his resignation as Calvert’s superintendent of schools to become chief academic officer for the state. In the following months, some Calvert County Board of Education members uncovered the amount of money Smith was permitted to take from the school system in comprehensive benefits.While Smith’s contracts paid him an annual base salary of $169,000, his total compensation was upward of $300,000 in his last year as superintendent. Smith said the additional income was due to benefits, including life and health insurance coverage that will continue for life for him and his wife, paid by the Calvert school system and approved by the previous school board.Smith also was permitted to cash in annual sick leave he hadn’t used. Though Smith’s salary remained at $169,000, his take-home amounts increased each year.Smith also had granted similar contracts to his executive team members. Many Calvert school board members, including current board member Kelly McConkey, were not aware of these contracts.“I couldn’t believe somebody could do what they did and be promoted to a position of importance like that,”..
Now, here we are in 2020, in the beginning of a global pandemic where schools are closed and the public is not allowed to attend public meetings.  

****************
Now let's look at what is happening this week in Montgomery County Public Schools. 
  • Tomorrow the Montgomery County Board of Education will be given a MEMORANDUM that purports to detail a CONTRACT.  
  • The Board of Education is to vote on the CONTRACT without ever actually seeing it.
  • Based on the years of litigation generated in Calvert County by then Superintendent Jack Smith's signing of contracts one would think that Superintendent Smith would be providing Montgomery County Board of Education members with the actual CONTRACTS that they are voting on.  But that won't happen tomorrow, April 21, 2020.
On April 21, 2020, the Montgomery County Board of Education will vote to spend up to $800,000 for an artificial turf football field for the City of Gaithersburg without even knowing it. 

Here is the MEMORANDUM that Superintendent Jack R. Smith is presenting to the Montgomery County Board of Education: 
Jack Smith Memo to Board of Ed.


But here is the ACTUAL CONTRACT that Superintendent Jack Smith has sent to the City of Gaithersburg.  
The Parents' Coalition has obtained the actual document and made it public.  


In the actual Contract it says that the City of Gaithersburg shall construct a field of THEIR choice, either artificial turf or natural grass.  The Contract says that if the City of Gaithersburg builds an artificial turf field then the Board of Education shall reimburse the City for up to $800,000 for the design and construction of an artificial turf field.  










On April 21, 2020, the Montgomery County Board of Education will unknowingly vote to spend $800,000 on a luxury item for the City of Gaithersburg, meanwhile children in Montgomery County are out of school, missing meals and families are in crisis.

Tuesday, January 14, 2020

"On top of that, the toilet paper dispensers are extremely inefficient and only allow for 2 to 3 squares to be broken off at a time. I have over 100 signatures on a petition advocating for better toilet paper from Cabin John’s 8th Grade alone."




The second topic is purchasing more buses. MCPS has too many students and too few buses. I’ve seen the crisis going on right now when it comes to bus space and overcrowding. I have personally witnessed the horrible seating, students (including me) sitting on the floor, squeezing 5 people in a three seater and witnessing an actual fistfight over who could be the third person in a three seater. I’ve talked to hundreds of students who feel the same way.

Monday, December 16, 2019

Baltimore County Public Schools whistleblower has message for employees, asks others to speak out

A whistleblower, who recently blew the top off a concealed second-known shredding of financial documents at Baltimore County Public Schools last year, has a message for other employees of the school system: “Think about how much you have seen, and what you know.  Has your silence made any of it better?”
The source, who recently came forward to two media outlets under the condition of preserved anonymity, says others should also find a way to speak out. “The only thing silence buys is more corruption. The truth will set you free… tell someone; a reporter or [WBFF-TV] Project Baltimore…”
“I’ve seen taxpayer money wasted in the millions. I’ve watched as our peers are mistreated, wronged, even fired for defending themselves or asking a simple question. If you question them, the regime will make an example of you.  They think they are above the law. It’s a culture of fear and the closer you get to retirement, the more silent you become…”
After a school board directive prohibited certain employees from destroying documents last year, two high-level executive directors suddenly disassembled a file room containing financial documents during the first phase of an active procurement audit – a room which held years’ worth of records not previously disturbed, according to the whistleblower...

Wednesday, October 16, 2019

“Clearly, the system holds them back and restricts their opportunity to thrive,” [Christopher] Barclay said. “That level of neglect must and can be addressed.”

Community Calls for Education Equity for ‘Black and Brown’ Students
Group makes list of recommendations to address achievement gap
...
The coalition said that to eradicate the achievement gap, MCPS needs to:
• provide incentives to recruit and retain strong teachers and principals in high needs schools
• increase access to professional learning
• ensure minority students have access to advanced-level courses
• engage families in their students’ education

• work closely with education equity advocates to quickly implement services...
~~~~~~~~~~~~~~~~~~
Christopher Barclay was a Montgomery County Board of Education member from December 2006 to 2016. 
Montgomery Co. school board member pays back almost $1,500 in unauthorized expenses
The Washington Post
May 22, 2014

Montgomery County Board of Education member and County Council candidate Christopher S. Barclay has reimbursed the school system for nearly $1,500 in unauthorized expenses since 2012, including restaurant meals and purchases from an online travel site, records show.
The expenses were charged to a board-issued credit card that members and other senior school officials may use for meals, travel and lodging related to official business. School system spokesman Dana Tofig said Thursday that the personal expenses on Barclay’s card were flagged during a monthly review of card use. He said Barclay has fully repaid the school system.
The reimbursements were first disclosed by the Parents’ Coalition of Montgomery County, a watchdog group that presses the school system for greater transparency. The information came in response to a public records request, and WJLA (Channel 7) reported on the expenses Wednesday...


Saturday, September 28, 2019

the perils of weak oversight in economic development agencies... @mococouncil

Millions of dollars are missing. The sheriff is dead. A small Virginia town wants answers.



FRONT ROYAL, Va. — Before the $21 million allegedly went missing, before the sheriff put his gun in his mouth and fired, before Tuesday’s announcement that the entire top tier of the Warren County government had been indicted, there was the dream.
It was a dream of renewal for this town 70 miles from Washington, which fell on hard times after a rayon manufacturing plant closed in 1989, leaving 1,300 people jobless and 440 acres full of toxic waste.

Twenty-five years later, with the land cleaned up and Front Royal increasingly attractive to tourists and former city dwellers, officials announced plans for a data center and retail complex that would bring 600 jobs and act as a catalyst for other projects.
The deal was brokered by Jennifer McDonald, a longtime Front Royal resident who directed the Warren County economic development authority. Washington-area developer Truc “Curt” Tran pledged to finance it with $40 million from wealthy immigrant investors and a $140 million federal contract his technology company had secured. As an added bonus, Tran would fund a police training academy overseen by longtime Sheriff Daniel T. McEathron.
But those were lies, documents in Warren County Circuit Court allege.
Tran never had the money to build the data center project on the 30 acres his company bought from McDonald’s agency for $1, a civil lawsuit alleges. And the training academy was one of several hoaxes that, prosecutors and civil lawsuits claim, allowed Tran, McDonald, McEathron and others to siphon away millions in public funds, which they allegedly used to buy properties, pay bills and gambling debts, and enrich relatives and friends...
...The claims against them, industry groups say, reflect the perils of weak oversight in economic development agencies — quasi-public entities that oversee large, complicated transactions, and whose boards often lack the financial savvy and investor scrutiny that protect their corporate counterparts. In Montgomery County, Md., an economic development official pleaded guilty this year to embezzling $6.7 million. The head of economic development in St. Louis pleaded guilty to steering lucrative contracts to the county executive’s political donors. In New Jersey, a grand jury is investigating how $500 million in tax incentives went to firms that, in part, allegedly lied on their applications...

...“Somebody is finally listening,” said Salins, co-founder of the Warren County Coalition watchdog group. “It’s not every day that your entire government gets arrested. It’s so shameful.”..

Thursday, February 28, 2019

Fake invoices and gambling debts: How a county bureaucrat stole $6.7 million

Peter Bang was shaking.
The 20-year Montgomery County employee sat before the county attorney and his deputy in a conference room in Rockville, staring at the piece of paper in front of him. He was being placed on leave without pay for stealing more than $6.7 million in public funds over six years, by far the largest embezzlement scheme in the affluent suburb’s history.
Bang “was trembling; he was shaking the whole time,” Deputy County Attorney John Markovs said. “He lowered his head and seemed resigned to the fact he had been caught.”
Byung Il “Peter” Bang, a numbers and budget guy, was also an embezzler and a gambler, according to court filings — bringing hundreds of thousands of dollars to casinos across the country even as he wagered he would get away with stealing millions from Montgomery County coffers...
...“Neither the people below him or above him seemed to be able to answer questions about the department’s finances,” said Jacob Sesker, then the County Council’s economic development analyst.
Bang’s appearance added to the effect.
“He was always the best-dressed man in the room,” said Sesker, now a senior legislative analyst with the county. “It’s not that often you’re in a room full of people both in the public and private sector, and the best-dressed person is a bureaucrat.”..
...Bang then directed money from the county toward a false company that seemed to be created for the scam, with a name evoking the province: Chungbuk Incubator Fund LLC. He approved the LLC’s fake invoices, directing the county to hold the checks for him to pick up. The money went to bank accounts associated with Bang’s home address in Germantown.
The scheme ended after Montgomery privatized its economic development functions in 2016, doing away with Bang’s department — and his ability to direct funds with apparent impunity. Bang was transferred to the county’s finance department.
And there he might have stayed if the Internal Revenue Service hadn’t knocked on the county attorney’s door with a summons in April 2017...

Wednesday, August 29, 2018

MCPS, This Is You: ...school districts have an odd bus camera problem on their hands

A Harahan-based company specializing in school bus traffic cameras appears to have stopped operating amid an alleged bribery scandal in Dallas that investigators say could cost taxpayers there tens of millions of dollars.
The FBI has launched a probe, looking at the company's CEO as well as the head of a Texas state agency that bought thousands of its traffic cameras.
Force Multiplier Solutions' fall from grace has left its clients, including about two dozen school districts across the country, in the lurch. East Baton Rouge and Jefferson parishes, which adopted the company’s camera system years ago, are two of them.
On Feb. 7, the Jefferson Parish School Board voted unanimously to terminate its contract with Force Multiplier. East Baton Rouge school officials are considering doing the same.
Both also are considering whether to sign on with a successor company, Canada-based BusPatrol Inc. BusPatrol, which is run by many of the same people, claims it has acquired Force Multiplier’s assets but not its liabilities.
For more than a decade, Force Multiplier, operating under different names, has offered school districts an attractive deal. The company would buy, install and maintain elaborate video camera systems on school buses, systems that would ordinarily cost an estimated $10,000 per bus. The company charged nothing up front. Instead, it reaped a hefty share of the revenue collected from camera tickets paid by motorists caught speeding through bus stops.
Jefferson Parish was one of the company’s first clients, signing on in 2007, back when the firm was called ONGO Live. East Baton Rouge Parish signed on in 2011 when the company was called Busguard.
Now, the company has gone dark. The company’s main website has been down for weeks. Voicemails left at its Harahan office were not returned...
...But the program didn't collect nearly as much as anticipated — there were fewer violators than expected and even fewer who bothered to pay the tickets ...
...East Baton Rouge Parish’s Chief of Student Support Services Gary Reese said the company stopped installing cameras after outfitting almost 250 buses, about 40 percent of the fleet, saying it planned to come back with even better cameras, but it never did.
Reese said the videos taken by Force Multiplier cameras were its best feature. They were useful in sorting out who was telling the truth in student and employee disciplinary issues.
“We used it for that reason more than anything,” Reese said.
But in December, Force Multiplier stopped supplying videos upon request, Reese said. Soon after, a letter arrived from Leonard, a letter that Jefferson Parish also received. It informed them both that Force Multiplier was bowing out and instead "all assets, including our contracts with school districts, have been purchased and will be assigned to BusPatrol America, L.L.C."
In an interview, BusPatrol’s CEO Jean Souliere said that’s not accurate. He said BusPatrol bought only the company’s assets, particularly its “intellectual property,” but not its contracts or its liabilities...
...Since then, Souliere said BusPatrol has continued to service old Force Multiplier accounts “at our expense.” During that time, he and other BusPatrol representatives have slowly been reaching out to former Force Multiplier clients and have signed up five counties in Alabama, Georgia, Maryland and Virginia...