Kickbacks Lead To Jail Time

Kickbacks Lead To Jail Time

The Detroit school system, struggling to pay for teachers, school supplies, basic repairs, etc., now is struggling with news of kickbacks being taken by 13 school principals.

On March 29, 2016, these 13 school principals (5 now retired) were indicted for accepting $908,518 in kickbacks from a vendor, Allstate Sales’ owner Norman Shy.

A week before, another Detroit principal pleaded guilty to taking bribes and faces 37 to 46 months in prison.

It’s interesting that over the years, School-Pak has provided quotes to prospective schools and has been asked what the “kickback” is to the school or parent group. When informed that it’s illegal to provide “kickbacks” we’re no longer considered. We don’t even get a call-back from the school contact saying that they’ve chosen a different company.

We have never rewarded any of our contacts at a school with any type of “gift” or “kickback” as a way to entice the contact to use School-Pak as a source for their school supply kits.  An outside source once suggested that we give the contact free supply kits for their children if we were chosen. We’ve always stayed away from any illegal activity or putting our contact into a conflict of interest situation.

It’s obvious, with 13 indicted principals, that the practice of “kickbacks” is happening. Our hope is that it’s not as pervasive as some think.

To learn more, go to the New York Times story at