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Detroit Public Schools vendor pleads guilty in corruption case involving principals

Norman Shy faces up to 7 years in prison on bribery, tax evasion charges

DETROIT – A 74-year-old businessman has pleaded guilty to charges in connection with kickback schemes involving a dozen Detroit Public Schools principals and an administrator

Norman Shy pleaded guilty to bribery and tax evasion Wednesday in U.S. District Court in Detroit.

He must pay $2.7 million in restitution, and faces up to seven years in prison when he is sentenced in September. 

He has also paid $50,000 in back taxes. 

Local 4 caught up with Shy outside court Wednesday morning and asked him if he had anything to say about the case. 

"No comment," he said. 

Shy, of Franklin, was charged after prosecutors said his company received $2.7 million from the district.

Federal authorities say the bribery and kickback scheme started as early as 2002. They say fraudulent invoices were submitted by school district employees for chairs, paper and other supplies.

A number of principals already have struck deals with the government and pleaded guilty in the case.

Read: DPS officials will steal from their own, feds say

Read: Accused ex-Detroit principal was featured in documentary about school

View all of the federal complaints here:

 

 


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