Ohio auditor: Worker took $4M from school district

Tuesday October 16, 2012 5:01 PM

CUYAHOGA HEIGHTS, Ohio (AP) — Ohio's auditor alleges a former information technology director stole nearly $4.2 million from a suburban Cleveland school district over four years.

Auditor Dave Yost said Tuesday prosecutors will review the audit of the Cuyahoga (ky-uh-HOH'-guh) Heights district for possible criminal charges against those involved.

The audit found former district IT director Joseph Palazzo authorized over $3.8 million in payments to seven vendors run by relatives and friends, and the schools didn't receive goods or services in return. It found that $336,000 more in transactions for good and services can't be located.

The superintendent says Palazzo resigned in February 2011 as officials moved to fire him. A message was left at a phone number under Palazzo's name.

The district plans to pursue civil litigation to help recover the missing funds.

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