OIG Investigative Reports, School Administrator Guilty of Federal Grant Fraud Skip to main contentAbout UsContact UsFAQs Language Assistance Englishespañol中文: 繁體版Việt-ngữ한국어TagalogРусский U.S. Department of Education Search for: Toggle navigation U.S. Department of Education Student Loans Grants Laws Data About ED OFFICES Home Reports & Resources Programs/Initiatives News Office Contacts Investigative Reports FOR IMMEDIATE RELEASE: January 14, 2004 United States Attorney Western District of Wisconsin (608) 264-5158 TTY (608) 264-5006 Contact Person: Stephen Ehlke Peter M. Jarosz Assistant United States Attorney (608) 264-5158 School Administrator Guilty of Federal Grant Fraud Madison, Wisconsin - Stepehen P. Sinnott, First Assistant United States Attorney for the Western District of Wisconsin, announced that Thomas Flaschberger of Hayward , Wisconsin, DOB: 3/21/1950, was found guilty yesterday evening of three counts of mail fraud in United States District Court in Madison after a two day jury trial. United States District Judge John C. Shabaz scheduled sentencing for March 30, 2004, at 1:15 p.m. Flaschberger faces a maximum sentence of twenty years in prison and a $250,000 fine on each count. The defendant will also be ordered to pay restitution. The trial established that Thomas Flaschberger was employed by the Lac Courte Oreilles Ojibwa Community College in Hayward, Wisconsin and acted as the Administrator of Perkins Grants for the Consortium of Indian Controlled Community Colleges. Perkins Grants are federal education funds, administered through the state, and distributed to schools and school districts who have a certain number of disadvantaged students and provide services for those students such as counseling and guidance, assistance with test taking, and weekly evaluations. In 1994, the Lac Courte Oreilles Ojibwa Community College and the College of Menominee Nation entered into an agreement to obtain and share Perkins Grants because each school, by itself, did not have a sufficient number of qualified students to obtain the grants. From 1994 through 2001, the consortium received over $900,000 in Perkins Grants. By 1995, the defendant, Thomas Flaschberger was placed in charge of the grants. In that capacity, he certified to state officials the number of qualified students at the school and that services were being provided. An audit conducted in 2001 discovered that the student numbers between 1997 and 2001 were being grossly inflated - in some cases they were nearly doubled. In addition, virtually none of the services required by the grant were being provided to the students. First Assistant United States Attorney, Stephen P. Sinnott, wished to emphasize the importance of the conviction: "Flaschberger's crimes directly attacked the integrity of crucial federal educational programs. He victimized those students at the Lac Courte Oreilles Community College who did not receive the important educational support they should have received. In addition, he victimized students at other colleges since by his crimes he took money which otherwise would have been available to assist them in their education." The charges against Thomas Flaschberger were the result of an investigation conducted by the Department of Education, Office of the Inspector General - Investigative Services. The prosecution was handled by Assistant United States Attorneys Stephen Ehlke and Peter M. Jarosz. Top Printable view Share this page Last Modified: 03/03/2005 How Do I Find... Student loans, forgiveness College accreditation No Child Left Behind FERPA FAFSA 1098-E Tax Form 2015 Budget Proposal More > Information About... Transforming Teaching Family and Community Engagement Early Learning K-12 Reforms More > Connect Facebook Twitter YouTube Email RSS Google+ More > MISUSED FOIA OIG Fraud Hotline Our mission is to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access. Student Loans Repaying Loans Defaulted Loans Loan Forgiveness Loan Servicers Grants & Programs Apply for Pell Grants Grants Forecast Open Grant Competitions Find Grant Programs by Eligibility Laws & Guidance No Child Left Behind FERPA Civil Rights Data & Research Education Statistics Postsecondary Education Data State Education Data Nation's Report Card What Works Clearinghouse About Us Contact Us ED Offices Jobs News FAQs Budget, Performance Notices FOIAPrivacySecurityInformation qualityInspector GeneralWhitehouse.govUSA.govBenefits.govRegulations.gov
School Administrator Guilty of Federal Grant Fraud. Madison, WI, January 14, 2004
Published by the Department of Education, Office of Inspector General on 2004-01-14.
Below is a raw (and likely hideous) rendition of the original report.