Vendor pleads guilty to ripping off DPS students

Posted: 6:29 PM, May 11, 2016
Updated: 2016-05-11 18:29:40-04

Guilty. That is the plea Norman Shy entered in response to Conspiracy to Commit Bribery and Federal Tax Evasion charges today. 

Shy is the vendor at the center of an investigation into bribes and kickbacks in the financially troubled Detroit school district.

Federal investigators say Shy's company, which went by the names All State Sales and World Wide Sales, received about $2.7 million in fraudulent dollars from the district.

How did his scheme work? 

In court he told the judge, “Between 2009 and 2013 I operated a business called All State Sales. I conspired with school officials. I didn’t fully deliver items listed on purchase orders which were fraudulent. I paid school officials or gave them things of value for approving this.“

Twelve now former DPS principals and an administrator are also accused of being involved.

The judge now has to review and accept a plea deal before a sentencing hearing scheduled for September 6 at 10:00 a.m. 

Under the deal his sentence would involve 70 to 87 months in prison. He would have to pay Detroit Public Schools almost $2.7 million in restitution plus fines.

The DPS officials facing charges are expected to be sentenced on the same day.

As Shy walked out of court 7 Action News confronted him. He was asked what he wants to say to the children of Detroit Public Schools. He walked silently to a waiting car.