Insurance May Only Pay School District Fraction Of Misspent $3.1M

Ann Dornfeld
10/11/2012

Seattle Public Schools' attorney says the district will likely only get a $280,000 insurance settlement after the $3.1 million financial scandal involving former district official Silas Potter. KUOW's Ann Dornfeld reports.

TRANSCRIPT

Silas Potter led the district's Regional Small Business Development Program and the Small Works Roster Program. Last year an audit found that as head of those programs, Potter authorized about $2.8 million in sketchy contracts to small businesses, construction companies and community organizations.

Potter and two associates were charged with first?degree theft for allegedly funneling another $280,000 dollars to themselves.

District General Counsel Ron English says that $280,000 is the only money the district expects to receive from insurance, because it's classified as a "loss."

The other $2.8 million is just considered "misspent," so English says it can't be recovered through insurance. English told the School Board Executive Committee that more money could potentially be recovered through restitution.

Potter's felony theft trial is scheduled for February. He's scheduled to appear alongside codefendant David A. Johnson, who allegedly benefitted from fraudulent contracts Potter authorized.

A second co-defendant, Lorrie Kay Sorenson, pleaded guilty to first-degree theft in June.

I'm Ann Dornfeld, KUOW News.

? Copyright 2010, KUOW

Source: http://www.kuow.org/program.php?id=28167

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