Ex-Boone County Schools official indicted for $3.4 million in fraud involving supplies
MADISON, W.Va. (WCHS) — The former maintenance director for Boone County Schools has been federally indicted after authorities said he used his position to falsify documents that led to the school system being defrauded of approximately $3.4 million.
Federal authorities arrested Michael David Barker, 47, of Foster, Wednesday morning after a grand jury indicted him on 18 counts. The charges include one count of conspiracy to commit mail fraud, 11 counts of mail fraud, three counts of theft and three counts of money laundering.
If convicted, Barker faces a maximum penalty of 20 years in prison for the conspiracy count and each mail fraud count, as well as up to 10 years in prison for each theft and money laundering count.
According to the indictment unsealed on Wednesday, Barker and a co-conspirator named Jesse Marks entered into a scheme to defraud the Boone County Board of Education of the money. Marks has not been indicted in connection to the case, prosecutors said.
Barker was the maintenance director for the school system and used his position to falsify documents showing that the Boone County Board of Education was receiving a large amount of janitorial and custodial products, such as hand soap, trash can liners and facemasks from Marks' company, Rush Enterprises, the indictment said. "When, in fact, the Boone County Board of Education was only receiving a small portion of those products," the indictment said.
Rush Enterprises is located in Rush, Kentucky and has an office in Kenova, West Virginia. A call to the company has not been returned.
Read the entire indictment against Michael David Barker here:
Federal prosecutors said Barker and Marks conspired to overbill the school system for the undelivered products and split the proceeds from the fraudulent scheme, with Barker receiving approximately $2 million of the proceeds.
"Barker then used his share of the proceeds to make extravagant purchases for his personal benefit," the indictment said. Barker also laundered the proceeds of his fraudulent scheme by purchasing a utility vehicle and making down payments toward the purchase of a track loader and excavator, according to a press release from U.S. Attorney William Thompson.
Prosecutors said that Barker submitted fraudulent invoices and purchase orders as part of the scheme, which caused the Boone County Board of Education to pay for more than $4 million in products from Rush Enterprises.
"During calendar years 2022 and 2023, for example, Barker submitted invoices to the Boone County Board of Education which caused them to pay Rush Enterprises for 4,993 cases of hand soap when, in fact, they had only received approximately 829 cases," the indictment said.
The Boone County Board of Education ended up paying more than $470,000 for hand soap that was never delivered, prosecutors allege.
“At a time when Boone County Schools faced significant challenges, particularly while responding to the COVID-19 pandemic, Mr. Barker used his position of authority to enrich himself at the expense of the children of Boone County,” Thompson said. “Mr. Barker’s scheme siphoned millions of much-needed dollars from our public schools, and the indictment unsealed today seeks to hold him accountable for his criminal actions.”
The school system said in a statement Wednesday that it requested an audit by an outside entity of its custodial supplies inventory, at which point it noticed the inventory did not match what had been distributed to schools.
“The school system immediately took personnel action regarding the former employee, Michael David Barker, and reported these inventory discrepancies to the appropriate state agencies for review,” a statement from Boone County Schools Superintendent Matt Riggs said. Barker was the maintenance director from 2015 through Nov. 2023.
He said the school system has been working with investigators throughout the case.
“Of course, the school system is shocked that these alleged crimes would be committed against it, by one of its own at the time, and the impact the same has on the entire school system,” the statement continued. “Although saying that the school system is shocked and disappointed is an understatement, we express our appreciation to all of the agencies seeking appropriate justice.”
Prosecutors claim that Barker told Marks not to submit an invoice for the actual supplies and products delivered. They also say Barker directed his secretary to sign purchase orders based on fraudulently created invoices and submit them to the Board of Education's central office.
Barker and Marks are also accused of agreeing to split any amount paid by the board for products or supplies that were not received between themselves.
Barker had an initial appearance before U.S. Magistrate Judge Dwane Tinsley on Wednesday afternoon. He was released on a $10,000 personal recognizance bond. He will be back in court for an arraignment hearing on Dec. 18.
He was ordered to surrender his passport and any firearms and to have no contact with any victim or potential witness in the case. His travel has been restricted to only counties located within the southern district of West Virginia.
During a news conference Wednesday, Thompson told reporters to "stay tuned" when asked about Marks' involvement in the case and any possible charges.
