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.