This was on the Education New site www.ednews.org .
Why is the Plain Dealer not reporting in more detail on all of this corruption? Seems as if their investigators never get out of their office to do any real investigation. They were not even at the last Parma Board of Ed meeting when the Board was going into executive session to try to force Kelley to resign.
KELLEY'S KICKBACKS -- PARMA CITY SCHOOL DISTRICT BOARD DISCUSSES ALLEGATIONS
At the Board of Education meeting of August 13th, the Parma Boardhustled through business and postponed other planned business so thatthey could scurry into executive session and discuss the allegationsmade against board member Kevin Kelley that he has been involved inkickback schemes. Kelley was one of three individuals that had hishome and office searched pursuant to a warrant executed by the FBI.
The board did undertake some hasty necessary business and appointed anew principal. There was also discusison of an audit being conducted.They cut short the public comment section announcing that they had toget into executive session to discuss a 'public employee that is underinvestigation.'
The newly appointed principal feigned excitement before the board andher mother who attended with her. One could not help but note a degreeof stress on her face, perhaps due to her being hired by a district inthe middle of Ohio's biggest corruption scandal of the decade.
One board member insisting on not being named, confirmed that thepublic employee that was discussed in executive session is board memberKevin Kelley. As alleged on www.mapthemess.comKelley is linked to kickbacks from contractors and lawyers. The boarddiscussed at length how to counter the allegations to alter publicperceptions. Kelley refused to resign when it was proposed, and pushedstrongly an audit to be done. Discussion occurred regarding legalcounsel to deal with the investigation, and Kelley pushed for thatcounsel to be the Squires firm. For those of you who want some insightinto how a scheme such as this is pulled, here's how.
Most school district boards operate in a manner of providing oversightto the administration. Most administrations are given certaindecision-making powers, within limits, and the board monitors theadministration actions. For larger issues, the administration wouldconsult with the board, make recommendations, and the board would voteto approve or disapprove the recommendation. In large contractingissues, generally the administration would put something out to bid,sealed bids would arrive, the administration would investigate thosedoing the bidding, and then make a recommendation to the board.
But in Parma, Kelley pulled off a very unusual seizure of power. Kelley came in with a highly funded campaign that financed his electionand others that he convinced to follow him. Once elected, those thatwere elected along with him placed him in the president's seat. Oncethere and with the support of those elected with him, they orchestrateda legal, yet highly unusual seizure of administrative powers overcontracts. Interestingly, the individual behind Kelley's coup wasVincent Carbone who directly and indirectly financed Kelley'selection. If you have all been reading the news, you are aware thatCarbone has plead guilty to a corruption/kickback scheme in anotherconstruction scandal.
Now, those close to the investigation are aware that Carbone was aboard member in the Orange City School District, where the same type ofcoup occurred under Carbone's watch. Just as in Parma, allegations ofcontract steering were made. And also just as in Parma, legal feesshot through the roof. Not surprisingly, the firm representing bothDistricts is Squires, Sanders and Dempsey. And as suggested on www.mapthemess.com , there may be some benefit to board members in these districts to allow legal fees to shoot through the roof.
Now, once the board had control over contracts, steering thesecontracts was simple. Who is building a house right next to Kelley onJohnson's Island? Joe Gouker, a Parma School District projectdirector who was served a subpoena last week by the FBI in connectionwith the probe. And who do sealed bids get sent to? Joe Gouker, ofcourse. And who brought Joe into his position shortly after hiselection? Kelley, of course. So, Carbone finances Kelley's electionmove. Then Kelley pulls of the coup seizing complete control of biddingand contracts from the administration. And then Kelley puts his boy inthe key position to steer the contracts. This appears not to have beena scheme by happenstance, but a long thought out plan to seize controlof public finances for personal benefit.
Now another large contract that boards control is the one for legalservices. This is another area that raises suspicion. Kelley pulls ofhis coup, and along with Gouker being brought in, Michelle Nolan isbrought in as the Director of Special Education. Nolan had not evenbeen in a Directors position, and was coming from the tiny district ofLakewood. Experienced for the job of a 12,000 student district? Ofcourse not. The prior director Judy Hudgins was made subserviant toNolan, with no explanation. The administration at the time opposed thischange, and Kelley's board pushed it through. As a result, the priorspecial education director leaves, being unwilling to work under theseconditions. Now, the position Nolan filled was not advertised in anyfashion. It was a board directed change. Why? Likely because of thiswell thought out plan to get people in place who would "playball." What immediately occurs after Nolan is brought in? Specialeducation litigation costs shot through the roof! Parma spends about$1 million dollars on special education litigation each year -- threeor four times the cost of similar districts. (Let's not count Orange,as they experience the same phenomenon when Carbone got on theirboard.) The law firm in both districts? Squires, Sanders andDempsey. The attorney? Christina Peer. Coincidence?
When Kelley orchestrated this coup, the district had a long servingsuperintendent who decided it was time to retire. Kurt Stanic, anhonorable gentleman, was hired as the superintendent while Kelley wasengaged in pulling in "his people." Stanic spoke out against Kelley andwhat he was setting up. He was superintendent for about three monthsand chose to leave before his contract was completed. The word on thestreet is he did not want his reputation tarnished by what was beingpulled off in Parma. He is now the superintendent in Dayton. Kelleythen brought in Zatik, who turned a blind eye to the shenanigans. Andwhat benefit to her? Well, recently she was rewarded by the Board byretiring and then being hired back, allowing her to nearly double herincome. Was this a payoff for her role in the corruption?
We are hearing from our sources that there is at least on individualthat has been actively working with the feds for the last 14 months.This investigation has been ongoing, reportedly, for 19 months. Thisindividual supposedly has taped conversations with subjects of theinvestigation implicating others, including people in the Parma CitySchool District's employ. It sounds as if Kelley may have been a bitof a braggard about his exploits in Parma.
Let's predict Parma's next move, shall we? Kelley and the other"players" on the Board and in the administration are going to pushstrongly for an audit to be done. Yes, they will ask some outsidecompany to come in and audit the District's books. And for whatpurpose? So that once the audit is complete, they can shout from theroof tops, "See, there are no problems in the District and the auditorsconfirmed it. Therefore, I Kelley am inicent of any wrong-doing." Andmost of the ignorant masses will accept those statements. The truthis, however, that an audit of the District books and contracts is notgoing to show evidence of the type of scheme that appears to have beencarried out here. The disbursements flowing to the corrupt publicofficials don't show up on the public entities books. They aredelivered in brown envelopes under the table in a crowded restaurant. They are delivered with backhoes that put in the new pool at no cost. They are delivered with connections to the county office building,where someone under-assesses your property saving you thousands eachyear. They are delivered by giving your spouse a government job
for which he/she is not qualified. But, Kelley will be using this audit to argue his innocence.
Remember the Nixon tapes, and the problems they caused? What is goingto be very interesting is to see this investigation unfold, and it willbe particularly interesting to see the crimes that are discovered asindividuals attempt to conceal the original corruption. Might theParma board itself engage in criminal activity to cover upwrong-doing? Might a sham audit, which we predict to be their nextmove, be such a cover up activity that will lead to further charges. Will Kelley have the ability to "steer" the auditing contract?
School Watch will be offing more information, opinions, and predictionsabout this on-going corruption scandal in the Parma City SchoolDistrict. Stay tuned.
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