The Earl Capell Courthouse building in Downtown Dallas where Florine Mati and David Mbugua pleaded guilty to defrauding US SCHOOLS of Sh270 million. PHOTO | ANTONY KARANJA | NATION MEDIA GROUP
TEXAS
Two Kenyans have pleaded guilty to defrauding schools in two districts in the United States of $3.1 million (Sh270 million).
Florine Mati and David Mbugua, who run four tutoring companies in Dallas and Fort Worth areas, pleaded guilty to the charge on Tuesday.
They admitted to billing the money to schools in the two districts for teaching services that they never rendered.
The tutoring companies based in Hurst, Texas had promised to help poor kids from schools in Dallas access EXTRA tuition.
Mati, 42, and Mbugua, 43, who appeared in orange prison jump SUITS and their ankles in shackles before US magistrate Judge Paul D Stinckey, pleaded guilty to one count of conspiracy to make false, fictitious or fraudulent claims.
They have been in federal custody since their arrest in March this year. They were detained after the court determined that they were FLIGHT risks.
They each face five years jail term, $250,000 (Sh21.75 million) fine and refund the stolen money.
MISLEAD
According to the US Attorney office court files, the Kenyan natives formed four separate companies between 2011 and 2012 namely Diverse Learning, Avenue Academy, Boost Academy and Wise LINKS (also known as Champions Mind) to hide their true ownership and mislead the Texas Education Agency into believing that the firms were unrelated.
According to the court documents, the accused billed the Dallas and Fort Worth SCHOOLdistricts about $4.1 million (Sh356 million) out of which, only $1 million (Sh87 million) services had been provided.
The Kenyans and their EMPLOYEES enrolled hundreds of students ONLINE from their offices and charged $100 (Sh8,700) per student.
Mati, who is a former school teacher, used her online access to the Dallas District network to find students to enroll.
SELL PROPERTY
She also went door to door, accompanied by her co-accused and employees, to seek students to enroll.
Mati and Mbugua admitted that they sent some of the proceeds to Kenya where they bought property.
Mati wired $783,625 (Sh68.2 million) of the company proceeds to family in Nairobi.
Mbugua admitted wiring $85,000 (Sh7.4 million) to himself and family in Kenya, and the money was used to build a house.
As part of their restitution, they have agreed TO WORK with the US government to sell the property in Kenya and turn over any proceeds.
The four companies were getting federal education funds under the No Child Left Behind federal law which made it possible for students from poor backgrounds in public schools access free EXTRA tuition.
They will be sentenced on February 20, 2015.