Detroit principals in bribery case won’t get full pensions

Posted at 9:07 AM, May 01, 2017
and last updated 2017-05-01 09:07:52-04

DETROIT (AP) — Michigan Attorney General Bill Schuette says his office has secured the forfeiture of the state-paid portions of pensions held by several Detroit principals caught up in a federal bribery case.

Schuette says the judgment for eight of the principals was entered Friday. The contributions will no longer be paid to nine former principals and about $258,000 from the state-paid portion will be repaid.

Michigan law allows for forfeiture of public employee retirement benefits paid by the state into their retirement fund since the case was related to their public service.

More than a dozen people pleaded guilty, including 11 Detroit principals and a contractor, Norman Shy. The government says bogus invoices were submitted for paper and other supplies. In exchange, principals received gift cards, cash and checks from Shy.