Christina Spicer  |  April 14, 2021

Category: Legal News

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Class Action Alleges Superintendents Reaped Millions in Student Enrollment Scheme

Students who say their identities were stolen in a multimillion-dollar school enrollment scheme perpetrated by two Alabama superintendents and others filed a class action lawsuit Tuesday.  

The lead plaintiffs include anonymous minors who say that they were enrolled in public school without their or their parents’ knowledge by the now-former superintendents of Limestone County Schools and Athens City Schools, Tom Sisk and Trey Holladay, along with others. Allegedly, the scheme resulted in millions of dollars being diverted to their public school districts, as well as into the perpetrators’ own pockets. The plaintiffs claim that they and other students who unknowingly had their information disclosed in the scheme face the threat of identity theft and fraud for years to come. 

“In a scheme dating back years, the six Defendants stole the identities of hundreds of students in order to wrongfully enroll them in a virtual program without their, or their parents’, knowledge,” states the lawsuit filed in Barbour County circuit court Tuesday. “They then funneled millions of dollars from the State of Alabama into their own pockets through a series of shell companies.” 

The superintendents Sisk and Holladay, along with defendants David Webb Tutt, Greg Corkren, Deborah Holladay, and Rick Carter were indicted by federal prosecutors on conspiracy, wire fraud, and identity theft charges. Last week, Sisk entered a guilty plea on the federal charges, according to local ABC affiliate, WAAY 31. 

The class action lawsuit states, “defendants offered incentives of technology and web-based educational resources, as well as fringe benefits and perks to private schools with minimal means in exchange for private student information, including dates of birth, addresses, Social Security identification numbers.” 

The information was allegedly used to enroll students, many from poorer regions of Alabama who attended private schools, into virtual programs in the Athens City School District. The scheme would garner $7,000 per enrolled student, says the lawsuit, diverting money away from needy areas and exposing Class Members to the risk of identity theft and fraud.  

Attorneys representing the plaintiffs told reporters that they did not know how many identities the defendants stole from students, but the complaint indicates nearly 100 Class Members.  

The class action lawsuit accuses the defendants of violating federal Racketeer Influenced and Corrupt Organizations (RICO) laws, along with endangering the identities of thousands of students. The plaintiffs are seeking to use the ill-gotten gains from the student enrollment scheme to create a trust for the benefit of Class Members, including all students whose identities were compromised in the scheme.  

Has your child’s identity been stolen? We want to hear from you! Tell us about your experience in the comment section below! 

The lead plaintiffs are represented by Eric J. Artrip of Mastando & Artrip, LLC and Will League of Siniard, Timberlake & League, PC.  

The Student Enrollment Fraud Class Action Lawsuit is Doe, et al. v. Holladay, et al., Case No. 69-CV-2021-900016.00 in the Circuit Court of Barbour County, Alabama.  

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