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Judge: Government can seize homes, assets from corrupt DPS vendor

Empty classroom
Flickr - http://j.mp/1SPGCl0
3rd floor classroom of Detroit Redeemer High School

A former school supplies vendor who admitted defrauding the Detroit Public Schools will see his major assets seized by the federal government.

Norman Shy pleaded guilty to running a bribery and kickback scheme that defrauded the district of nearly $2.8 million, paying off principals and a district administrator with money he received for school supplies that were never delivered.

Shy’s plea agreement spelled out assets the government could seize to repay that.

But Shy’s lawyers objected to Judge Victoria Roberts’ preliminary order of forfeiture in the case, saying it deprived Shy’s wife and heirs from “asserting their title interests in various real or personal property.”

But Judge Roberts knocked down that argument recently, and ordered all Shy’s property named in the plea agreement seized.

That includes his current multi-million dollar home in a Detroit suburb, Franklin, as well as another property in Bloomfield Hills. It also includes multiple bank accounts.

Roberts said all other claims on Shy’s assets can be worked out in court later.

Shy’s sentencing is scheduled for September.

Sarah Cwiek joined Michigan Public in October 2009. As our Detroit reporter, she is helping us expand our coverage of the economy, politics, and culture in and around the city of Detroit.
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