Vendor cuts deal in DPS bribery case

Posted at 6:11 PM, Apr 07, 2016
and last updated 2016-04-07 18:11:43-04

The U.S. Attorney’s Office says the vendor accused of ripping off Detroit Public Schools has cut a tentative plea deal.

Norman Shy, the owner of Allstate Sales, is alleged to be at the center of a bribery and kickback case. Shy allegedly rewarded Detroit Public Schools principals with gift cards, cash and checks when they used his company as a vendor for supplies. 

Investigators say supplies paid for were often never delivered.

The details of the deal are not being released. There is now a hearing scheduled for May 12 to discuss the deal at Federal Court.

Twelve principals and a school administrator are facing charges for taking money or gift cards from Shy worth in total more than $900,000. 

The estimated cost to the district for supplies not delivered is $2.7 million.