MONTGOMERY, Ala. (WHNT) — Four defendants that were convicted in a multi-million dollar virtual school fraud scheme have now been ordered to pay restitution.
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.
According to the U.S. District Court for the Middle District of North Alabama, former Athens Superintendent William “Trey” Holladay will be liable for repaying 50% of the restitution amount owed for both the 2016-2017 and 2017-2018 school years.
Rick Carter was found by the court to be liable for 25% of the restitution owed for the 2016-2017 school year and 20% for the 2017-2018 school year.
Gregory Corkren will be liable for 25% of the restitution owed for the 2016-2017 school year and 20% for the 2017-2018 school year.
David Tutt was found liable for 10% of the restitution owed.
Each of the defendants agreed to pay back those funds to the Alabama State Department of Education (ALSDE), federal court records show.
Each party, excluding Carter, also 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.
In total, $5,731,897.20 has been awarded to the ALSDE.
- Holladay will be responsible for paying $2,865,949.60
- Carter will be responsible for paying back $1,303,514.28
- Corkren will be responsible for paying back $1,303,514.28
- Tutt will be responsible for paying back $258,920.04
You can read the full restitution agreement here.
Court records show that each defendant’s sentencing has been rescheduled as it is difficult to sentence them all at once. Documents show these new sentencing dates:
- Sisk: July 19, 2022 at 10 a.m.
- Holladay: July 21, 2022 at 8 a.m.
- Corkren: July 21, 2022 at 10 a.m.
- Tutt: July 21, 2022 at 1:30 p.m.
- Carter: August 3, 2022 at 9 a.m.
All the sentencings will be held in-person in Courtroom 2FMJ of the Frank M. Johnson Jr. U.S. Courthouse Complex in Montgomery.