School official named in theft ATLANTA - Former Georgia School Superintendent Linda Schrenko was indicted Wednesday, charged with stealing $614,000 in education funds to finance her failed gubernatorial campaign and a face lift. Her attorney denied any wrongdoing and said she will turn herself in to the federal courthouse in Atlanta on Monday, though no date has been set for a trial. She did not seek a third term as superintendent in 2002, instead deciding to run for the Republican nomination for governor, which she lost to Sonny Perdue. A routine audit of the Georgia Department of Education led to the investigation that resulted in a federal grand jury's indicting her, former Deputy Superintendent Merle Temple Jr., and A. Stephan Botes, a computer consultant originally from South Africa. Mr. Botes was arrested Friday and released on bond after surrendering his passport and agreeing to wear an electronic monitor. Mr. Temple is expected to turn himself in Monday. In the summer of 2002, according to the 18-count indictment, Mrs. Schrenko conspired to embezzle federal grant money by authorizing a series of payments, purportedly for computer services at state-run schools for the handicapped. The payments were just below the $50,000 maximum she was allowed to approve without specific action by the state Board of Education. Examiners with the state Department of Audits and Accounts raised questions about the Education Department's finances in the spring of 2003. They forwarded their report to the Georgia attorney general and to the Office of the Inspector General for the U.S. Department of Education. Federal officials indicated others might be charged as the investigation continues and efforts are made to get the money back. "Ms. Schrenko, Mr. Temple and Mr. Botes are charged with stealing funds meant for the education of Georgia's children and using those funds for a political campaign, personal investments and cosmetic surgery," acting U.S. Attorney Sally Yates said. Getting the money from Mrs. Schrenko could be difficult, even if she is found guilty. She and her husband filed for bankruptcy last year, and they are now divorced. "Linda is going to plead not guilty on Monday and denies any wrongdoing," her attorney Pete Theodecion said. A phone message left at Mr. Temple's home was not returned, and no one answered the door at his Evans home Wednesday. While in office, Mrs. Schrenko was frequently the target of complaints about her campaign disclosures, use of state travel funds and lax operation of her agency. State ethics commissioners were exasperated by her failure to file required reports and the lack of accounting for expenditures and contributions, eventually fining her $5,000 in August 2003. Two months later, the Department of Audits issued a scathing report about her management of her official duties.
Reach Walter Jones at (404) 589-8424 or walter.jones@morris.com.
The indictment Allegations against former state Superintendent of Schools Linda Schrenko: June 3, 2002: Mrs. Schrenko and Deputy Superintendent Merle Temple meet at the offices of computer consultant A. Stephan Botes in Atlanta. That month, Mrs. Schrenko orders the Department of Education to issue Mr. Botes' company a check for $50,000 and one for $32,493.50 for the Governor's Honors Program. June 28, 2002: Mr. Botes signs 104 checks for $590 from companies he controls and directs his staff to deliver them and $6,000 to Mr. Temple. July-August 2002: The checks are given to people who cash them and make "contributions" to Mrs. Schrenko's campaign for the GOP gubernatorial nomination. July 1, 2002: Mr. Botes transfers $15,000 among his companies before writing a check to pay for a voter survey. He begins setting up sham corporations. July 5, 2002: Mr. Temple resigns from the state payroll to become Mrs. Schrenko's gubernatorial campaign manager. July 24, 2002: Mrs. Schrenko directs an Education Department employee to prepare 11 hand-drawn checks, less than $50,000 each, payable to Mr. Botes' companies for technology at Atlanta Area School for the Deaf, Georgia School for the Deaf and the Governor's Honors Program. July 26, 2002: Mr. Botes orders his staff to take company checks, cash them in amounts of less than $10,000, and give him the cash for delivery to Mr. Temple. July 27, 2002: Mr. Temple goes to Tupelo, Miss., to funnel cash through his mother's bank account, letting Mrs. Schrenko's family give it to her campaign. Aug. 2, 2002: Mr. Botes writes checks to employees who are to cash them, gives $15,000 to Mrs. Schrenko and begins transferring money through bank accounts. Aug. 8, 2002: Mrs. Schrenko files a campaign disclosure report with the Georgia Secretary of State's Office that doesn't accurately show where money came from. That month, the trio creates back-dated contracts to fool state auditors reviewing the Education Department books. Sept. 14, 2002: Mr. Botes transfers $9,300 to Mr. Temple who pays a plastic surgeon for Mrs. Schrenko's latest face lift.
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