AS IF Baltimore's school system weren't financially challenged enough trying to correct a major deficit, it was the victim of a $3 million, decade-long fraud scheme, allegedly by a business contractor who has recently been indicted by a city grand jury. While the fraud preceded the current school administration, the indictment is yet another reminder of the importance of having good financial and management controls in place.
As outlined by the grand jury, Gilbert Sapperstein of Baltimore County, the longtime owner and operator of All State Boiler Co., was allegedly involved in two billing schemes in the city. In two indictments, Mr. Sapperstein is accused, with others, of conspiring to bribe a former maintenance manager for the school system, Rajiv Dixit, and then conspiring with Mr. Dixit to steal more than $3 million from the school system. The fraud allegedly continued for more than a decade, from 1991 to 2003.