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Thursday, March 28, 2024 | Back issues
Courthouse News Service Courthouse News Service

Pair Accused in School Busing Kickback Scheme

CHICAGO (CN) - Two former North Chicago School District administrators received $800,000 in kickbacks in exchange for awarding $21 million in school bus contracts from 2001 to 2010, the U.S. Justice Department says.

The indictment charged Gloria Harper, a former school board member, and Alice Sherrod, former transportation director, with soliciting bribes from three bus service owners in exchange for steering district contracts to those companies.

The 26-count indictment also names the bus owners and contains charges of wire fraud, bribery, and tax fraud.

"Initially, Harper and Sherrod allegedly received kickbacks of approximately $4,000 to $5,000 a month but, by 2003, they were collecting approximately $20,000 a month," the Department of Justice wrote.

The alleged scheme ran for almost a decade, with the most recent five-year contract awarded in 2009.

The Department of Justice seeks the forfeiture of $9.67 million, 48 buses, and seven cars as restitution. If convicted, the defendants can expect significant jail time as well as damages.

The bus company defendants are Derrick Eubanks, Tommie Boddie and Barrett White.

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