Florida school district loses $700k in fraud scheme, sheriff says
Flagler Schools allegedly scammed $700K
The Flagler County Sheriff's Office and the FBI have opened an investigation after Flagler County Schools sent $700,000 to an allegedly fraudulent account, thinking it was being sent to a contractor who was doing work for the district. Officials said it's unlikely that the money will be recovered -- and it's unknown where the money went, whether to someone in the U.S. or possible overseas.
FLAGLER COUNTY, Fla. - The Flagler County School District has fallen victim to a fraud scheme, in which they lost more than $700,000 according to the Flagler County Sheriff’s Office.
Sheriff Rick Staly said the district began working with a construction contractor in June. The parties came together on a project to expand Matanzas High School.
Sheriff Staly said in September, a district employee received an email requesting a sum of $719,583 for services related to the construction. An electronic transfer was made to an account believed to be that of the contractor.
Instead, Staly said the funds were transferred to a fraudulent account. On Monday, roughly two weeks after the money was sent, the district heard from the contractors who said they never received it. After looking into the incident, the district reported the alleged fraud to FCSO.
"It’s not an error by the school district or the contractor," Sheriff Staly said. "These things take time, and sometimes they’re not found right away." The FBI is involved in the investigation, as Staly said there's a good chance the money could cross state or even country lines if it hasn't already.
District superintendent Lashakia Moore didn’t go in-depth about the incident, citing the ongoing investigation. She did assure the community that no other district data is at risk at this time. "I am confident if there’s a way to recover the funds, that our Flagler Sheriff’s Office will find a way to do that," she said.
"It is unlikely that we will recover the money that has been taken because of the time delay," Staly said. No suspects have been identified.