The shorthand version is that in Chicago, 14 public school staff members have been caught committing PPP fraud. As a national ethics keynote speaker, ethics consultant and ethics book author, I find the case disturbing on a great many levels.
In a Chicago Sun Times report (September 5, 2023) we learn the troubling findings of investigators from CPS (Chicago Public Schools) that a fraud was uncovered from the Chief Operating Officer Crystal Cooper and 14 other staffers scamming the federal government. The investigation led to her resignation.
The Scam
Crystal Cooper was essentially the second-in-commend of the organization. She never revealed she was running a side business. That, in itself, is not a major crime. However, she never told CPS. She inflated her income to the federal government and she roped in a group of 14-co-conspirators also employed by the system.
Incredibly, this is but one scam. Investigators have so far discovered 780 CPS workers have raked in PPP funds.
Want to hear something even more incredible? Cooper’s salary was $220,000 and the others were making at least $100,000 in annual salaries. Please take a moment to reflect on Cooper’s salary and the fact that for all of her efforts, she walked away with about $15,000 in illegally-gained funds.
Everyone involved was making up fake companies. Cooper and her group, “have been barred from working for CPS again after resigning or being fired following the investigation.”
The joke that wasn’t
By now, most of America, regardless of political affiliation understands that due to the haste with which the COVID relief program was created, massive amounts of fraud were the result. Of course, many ethical organizations accounted for every penny and used it to keep their companies afloat, but others (tens of thousands of others) who had no regard for ethics invented all types of scams.
Of the high-level administrators caught up in the CPS investigations (According to the Sun Times) were:
- “A regional superintendent making $165,000 also was found to have created a fake business to obtain a PPP loan for the maximum $20,000 available to sole proprietors.” Allegedly, the superintendent used the money to gamble in Las Vegas and to spend it on “expensive luxury goods.”
- “A $140,0000-a-year school administrator falsely claimed to be a chef with $100,000 in income…” The person collected $20,000 in funds. By the way, the administrator never worked as a chef.
- This is a classic! “Another $100,000-a-year school administrator initially denied receiving any PPP money but changed that story when shown records of the $20,000 loan, then said it was a case of identity theft — but admitted getting and spending the money.” The administrator was not only a fraudster but a liar.
- However, as a national ethics keynote speaker, ethics consultant and ethics book author of all the unacceptable behaviors of CPS officials, this must rank as the worst: “A $120,000-a-year district administrator whose job involved overseeing federal grants for CPS inflated outside income to fraudulently qualify for a $20,000 PPP loan.” This individual darn well knew better.
These alleged abuses come on the heels of another scandal of a Chicago charter school that walked away with $43-million in PPP funding.
A hole 1-mile wide
Not for a minute do I think that CPS is unique among all educational institutions during the confusion created in PPP fund scams and COVID. The CPS educators saw opportunity in a time of scant oversight and jumped at the chance to steal the money. I dislike being so blunt but there is no other descriptor that is apropos.
The painful part here is that Crystal Cooper and the others were held-up as examples of people overcoming early life obstacles – and triumphing. As it has unfolded, they are the worst possible illustrations. Interestingly, no one would have prohibited Cooper from having a legitimate side or part-time business had she reported it, but it was all faked to satisfy her need for ill-gotten funds.
The 1-mile-wide hole is a systemic ethical failure. Instead of teaching, expecting, demanding good ethics, the “system’s best” the CPS fraudsters were getting something over on the same government that was making them great salaries. The message that was sent to students and the community was that no one at CPS cares. This is, of course, patently untrue. Nevertheless, they did tremendous damage to everyone decent.
Early on in this post I called the fraudsters educators. That is unfortunately what they are. They taught students that those in the CPS can’t be trusted. The mile-wide hole must be blocked by ethics training. Who will step-up?
