Findings for Recovery of More Than $1 Million Issued Against Former Community School Head Earlier Convicted in Kickback Scheme

Press Release •Ohio Auditor of State

COLUMBUS - Findings for recovery totaling more than $1 million were issued Thursday against the former head of a community school management company, who used self-dealing billing schemes to misappropriate funds from most of the schools under his administration.

Marcus May was convicted in December 2018 of comparable crimes at schools in Florida, leading to a sentence of 20 years in prison and court-ordered restitution of more than $5.2 million.

Thursday's findings for recovery are detailed in an investigation by the Auditor of State's Special Investigations Unit (SIU) into May's criminal activities in Ohio. The full report is available online at ohioauditor.gov/auditsearch/search.aspx.

SIU launched an investigation into May's Cambridge Education Group after receiving information about legal proceedings against him and a school management company he was operating in Florida. The Ohio management company oversaw two dozen community schools, with May serving as president and chief executive officer until December 2017.

SIU reviewed activities between July 1, 2012, and June 30, 2018, identifying multiple self-dealing schemes involving companies May had direct or indirect interests in and 20 of the schools he was managing. The companies billed the schools for various purchases and services, and May received improper payments as a result.

Investigators noted, "…May was responsible for properly billing each of the schools in accordance with the schools' management agreements, ensuring that goods and services were obtained at a reasonable price and safeguarding the schools from incurring unnecessary charges. However, Mr. May breached these duties when he directed several public contracts (toward) businesses where he had a direct or indirect relationship… rather than engaging in contracts entirely for the benefit of the schools, which caused the schools to incur detrimental financial consequences."

Thursday's findings for recovery included more than $1 million against May directly, $23,531 against the Cambridge Education Group, and $147 against a Cambridge Education Group employee who was reimbursed for the purchase of alcohol.

May and another man were convicted in 2018 in Florida for comparable schemes and sentenced to prison.

Since 2019, the Special Investigations Unit has assisted in 147 convictions resulting in more than $16 million in restitution (see Map of SIU Convictions since January 2019). The team receives hundreds of tips of suspected fraud annually. Tips can be submitted anonymously online or via SIU's fraud hotline at 866-FRAUD-OH (866-372-8364).

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The Auditor of State's Office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,900 state and local government agencies. Under the direction of Auditor Keith Faber, the office also provides financial services to local governments, investigates and prevents fraud in public agencies, and promotes transparency in government.

Public Affairs Contact: Marc Kovac [email protected]