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Former School Officials Plead Guilty to E-rate Fraud

Two former school officials from Clinton Community School District (Iowa) and Glendale School District (Pennsylvania) have pleaded guilty to E-rate fraud in two separate incidents.

Denisa Babcock, 37, pleaded guilty after admitting embezzling money from Clinton Community School District from November 2005 to December 2009. As a result of the actions of the former accounting supervisor, the Clinton district has a $1 million loss.

In addition to working at the School District, Babcock also owned a private business that provided E-rate services to other districts. Babcock unlawfully deposited checks belonging to the districts into her personal bank account, totaling $49,000.

In a separate incident, Dr. Dennis L. Bruno, 59, the former superintendent of Glendale School District, and now of North Salt Lake, Utah, pleaded guilty to one count of federal program theft. Bruno intentionally misapplied $49,600 of federal funds from the Fund for the Improvement of Education program. Bruno also admitted that he conspired with others to obtain E-Rate Program money in the amount of $414,421.92.

Both parties face up to 10 years in prison, a fine of up to $250,000, or both.

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