2700 WEST 15TH STREET  PLANO, TEXAS 75075
(P) 469.752.8272  (F) 469.752.8096  WWW.PISD.EDU
FOR IMMEDIATE RELEASE
CONTACTS:
Karla Oliver
Lesley Range-Stanton
Assistant Superintendent for Government, Community and Planning Initiatives
469.752.8142 | karla.oliver@pisd.edu
Director for Communications
469.752.8094 | lesley.range-stanton@pisd.edu
Plano ISD Conducted Thorough Investigation in Fraud Allegations which Led to
Employee’s Dismissal and Subsequent Conviction
Superintendent to implement additional regulatory measures based on independent and internal
auditors’ recommendations to increase awareness and detection of fraud
PLANO, Texas, (April 1, 2014) — When a Plano ISD security department employee notified the department’s
executive director that a questionable invoice had been discovered, district administrators immediately opened
an investigation. Plano ISD Superintendent of Schools Richard Matkin took the following steps:
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Appointed the district’s legal counsel, Richard Abernathy, to lead the investigation process.
Informed the Plano ISD Board of Trustees.
Directed the internal auditor to conduct a preliminary investigation to determine the validity of the
claim.
Retained the services of an independent forensic auditor, William Brown, CPA, a former FBI agent, to
assist with the internal investigation.
Took immediate action to place the complicit employee on leave and recommended his termination to
the board upon the direction of legal counsel in December 2013.
Filed a theft report with the Plano Police Department and subsequently asked for federal intervention to
attain the strictest enforcement of the law.
Filed claims with both the district’s and the vendor’s insurance carriers while also seeking restitution
from the guilty parties.
While the employee was suspected of exploiting funds allotted for security measures, the investigation
confirmed that the safety and security systems of the district were not compromised and the charges regarding
fraud were restricted to invoicing. The FBI is prosecuting in a range of $2.5 million to $7 million according to
federal sentencing guidelines. Plano ISD has reported $2.7 million in questionable charges.
“The district is the victim of a crime and this matter resides with the appropriate authorities. In light of this
criminal activity, we are reviewing all purchasing protocols and have noted the findings of the investigation,”
said Superintendent Matkin. “While collusion between an employee in management and a vendor can
circumvent internal controls, there needs to be a heightened awareness and a vigilance to root out those with
criminal intent which includes paramount efforts to recover funds.”
Post-investigation audit recommendations that Superintendent Matkin plans to immediately implement are in
the areas of purchasing, fraud identification, ethics training for the management team and the addition of an
internal auditor.
Press Release: Fraud Investigation/Action Plan
Page |2
About Plano Independent School District:
The Plano Independent School District (Plano ISD) (www.pisd.edu) endeavors to foster the highest level of
student learning. The mission of Plano ISD is to provide an excellent education for all students. Plano ISD is
located 20 miles north of Dallas, Texas and serves the residents of approximately 100 square miles in southwest
Collin County, including 66 square miles in the city of Plano, northern portions of the cities of Dallas and
Richardson and parts of the cities of Allen, Parker and Murphy. Plano ISD employs 6,500 faculty and staff
members who serve more than 55,000 students in 72 schools and 11 service facilities. Participating in Plano ISD
schools enables students to adapt to new learning opportunities throughout their lives, collaborate with, and
contribute to, the global community and to be creative and disciplined in their thinking.
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