LIMESTONE COUNTY, Ala. (WHNT) – Defendants convicted in a multi-million dollar virtual school fraud scheme have submitted a joint plan for repaying over $5.7 million in funds that were stolen from the Alabama State Department of Education (ALSDE), federal court records show.
In February 2021, several education officials were indicted in a scheme where they allegedly defrauded the State of Alabama by claiming private school students were enrolled in a virtual Athens City Schools academy.
Four of the five defendants in question, including former Athens Superintendent Trey Holladay and former Limestone County Superintendent Tom Sisk, have entered guilty pleas.
The fifth defendant, Rick Carter, took his case to trial and was found guilty. Carter has requested a new trial and has not agreed to the terms set by the other defendants.
Attorneys for the defendants wrote a repayment plan that adjusts the recompensation amounts for each defendant depending on culpability in the scheme, according to the court filing.
Each party, excluding Carter, agreed that Tom Sisk should not be liable for any of the amount owed to the ALSDE, because though Sisk reported false numbers, there were no payments made to Limestone County Schools based on the false reports.
The defendants, excluding Carter, agreed that Trey Holladay should be liable for 50 percent of the restitution amount, totaling $2,865,948.60. The remaining defendants William Carter, Jr. and Gregory Corkren are to be responsible for repaying $1,303,514.28 each. David Tutt will be asked to repay $258,920.04.
The plan now goes before a judge for approval.
Sentencing for all five defendants has been set for June 28, at 8 a.m. at the federal courthouse in Montgomery.