Whistleblowers Accuse District of Federal Fund Mismanagement
Two former employees of St. Paul School have filed a lawsuit against the district, alleging significant misuse and misappropriation of federal COVID relief funds. The legal action, targeting the district’s handling of emergency funding, claims violations of state and federal statutes. The lawsuit implicates former Superintendent Dr. Joe Gothard, who now holds a position in Wisconsin, as playing a central role in directing the questionable expenditures.
The plaintiffs, former Chief Financial Officer Marie Schrul and Business Systems Analyst Curtis Mahanay, plan to officially file their whistleblower case in court on Wednesday morning. According to Schrul, she repeatedly raised concerns with Gothard and the St. Paul School Board about potential misappropriation of funds but faced retaliation, leading to what she described as a “hostile” work environment. Both Schrul and Mahanay were dismissed from their positions in September 2022.
Allegations of Misuse Highlighted in Lawsuit
The lawsuit, obtained by local news outlet KSTP, alleges that the district used federal COVID relief funds inappropriately, including allocating the money for “employee bonuses and perks.” Schrul further claimed that these funds were also utilized to address the district’s $43 million budget deficit, a move she argues contravenes legal stipulations for federal funding use.
“I would question what they were buying for employees, including gifts using not only COVID funds but also federal nutrition funds,” Schrul said.
The lawsuit also accuses Gothard of authorizing taxpayer money for an exclusive, invitation-only event for 300 district employees. The event reportedly included $10,000 spent solely on food trucks.
District Remains Silent Amid Growing Concerns
Despite the seriousness of the allegations, St. Paul Public Schools has refrained from commenting on the lawsuit, citing its policy not to discuss ongoing litigation. Efforts to reach Gothard for his response were unsuccessful.
Schrul emphasized her commitment to serving the students, community, and taxpayers, stating, “I tried to keep sight of why I was there, and that was for the students, the community, and taxpayers.”
The legal action raises questions about accountability and transparency within the district’s financial operations. As the case progresses, it is likely to draw further scrutiny regarding the use of federal emergency funds intended to mitigate the impact of the COVID-19 pandemic.
