A former Chicago Public Schools principal and an ex-CPS employee pleaded guilty to fraud in federal court for their roles in a kickback scheme that took thousands from local school districts, according to the U.S. Attorney’s Office for the Northern District of Illinois.
Antonio Ross and Alfonzo Lewis both signed plea deals Tuesday after being indicted just over a year ago, according to court records.
The two allegedly created companies to apply as vendors for professional service contracts with District 65, submitting “false and fraudulent” documents to win them and then hid thousands of dollars in kickbacks to then-district superintendent Devon Horton, according to prosecutors.
Ross, then serving as Hyde Park Academy High School principal, obtained nearly $120,000 from District 65 and paid Horton nearly $42,000 from the proceeds, prosecutors said.
The scheme ran from August 2020 to…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.