Former Illinois School Board President Faces Fraud Charges

Annette Johnson is accused of a $1.3 million kickback scheme involving federal Covid grant money.

By TradepilotUSA News Desk

Event · Published · 2 min read

Media: © OpenStreetMap contributors · OpenFreeMap · US District Court, ILND · Scott Bauer, USDA Agricultural Research Service · Carol M. Highsmith · Keith Weller, USDA Agricultural Research Service

Annette Johnson, the former President of the East Aurora, Illinois School District 131 Board of Education, has been indicted on charges of engaging in a $1.3 million honest services fraud scheme. The indictment, returned in federal court in Chicago, accuses Johnson of directing funds to a company where she served as Chief Financial Officer in exchange for approving a vendor's sale of air purifiers to the school district.

According to the indictment, Johnson allegedly steered the school district to purchase air purifiers for approximately $2. 7 million in 2021, using Covid-era federal grant funds. The indictment claims that Johnson and the vendor had an agreement for the vendor to pay more than $1 million of the sale proceeds to a company owned by Johnson's boyfriend, where she was the CFO.

Shortly after a board vote approving the purchase, the vendor reportedly mailed a $1. 3 million check labeled 'commission' to the company.

At the time of the alleged scheme, Johnson was serving as the President of the District 131 Board of Education. She remains a member of the board despite the charges. The indictment charges her with two counts of honest services mail fraud and one count of honest services wire fraud. Each count carries a potential penalty of up to 20 years in federal prison.

The announcement of the indictment was made by Andrew S. Boutros, United States Attorney for the Northern District of Illinois. The investigation involved the U.

S. Department of Education Office of Inspector General, led by Acting Special Agent-in-Charge Scott Wingle, and the FBI's Chicago Field Office, led by Special Agent-in-Charge Ryan Whalen. The prosecution is being handled by Assistant U.

S. Attorneys Edward A. Liva, Jr.

and Adam Rosenbloom.

An arraignment date for Johnson in federal court in Chicago has not yet been scheduled. The public is reminded that an indictment is not evidence of guilt. Johnson is presumed innocent and entitled to a fair trial, where the government must prove her guilt beyond a reasonable doubt. If convicted, sentencing will be determined under federal statutes and guidelines.

Charges and allegations are not proof of guilt. Anyone charged is presumed innocent unless and until proven guilty in court.

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