In Detroit, 12 public school principals are accused of taking kickbacks on supplies that were never delivered. The charges, announced late last month, pose another blow to the long-troubled Detroit Public Schools, which needs hundreds of millions of dollars in long-term state aid.
Here's how the alleged kickback scheme worked: 12 principals, all working separately, gave contracts for school supplies to a vendor, who then kicked back some profits to them.
Detroit U.S. Attorney Barbara McQuade says the alleged fraud totals $2.5 million. She calls it a "punch in the gut."