Milwaukee Public Schools loses $450,000 in bank impersonation fraud
By Denise Craig & Maddie Augustine
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MILWAUKEE (WISN) — Milwaukee Public Schools was the victim of bank impersonation fraud by someone outside the district, resulting in an initial loss of approximately $450,000, Superintendent Brenda Cassellius announced Tuesday.
“This is a sobering reminder of the sophisticated financial scams that occur every day across the country. We are taking swift and immediate action to strengthen our internal procedures to prevent this from happening,” Cassellius said.
The district became aware of the fraud Monday, according to a message Cassellius sent to the finance team Tuesday.
U.S. Bank has recovered $255,000, and the district is working with the bank to recover the remaining $195,000, Cassellius said.
Federal, state and local authorities, including the FBI, the Wisconsin Statewide Intelligence Center and the Milwaukee Police Department, are investigating.
The district is conducting an internal investigation and implementing short- and long-term controls, Cassellius said.
12 News sat down with Cassellius one-on-one on Tuesday. 12 News asked her how the fraud happened, she did not reveal exactly what led to it, but did say she believed it was online.
“I believe that it was absolutely done through some sort of online,” Cassellius said. “I don’t have the particulars, so I can’t speak to the particulars, obviously. And so we need to finish the investigation.”
Cassellius said the district is still investigating how it happened and who was potentially involved. She said employees already undergo training, but the district is going to implement more safety controls and has named a new acting Chief Financial Officer.
Jennifer Buros will serve as acting chief financial officer during the investigation. Buros joined the district as deputy CFO in the summer and led this year’s budget process. She previously worked at the Wisconsin Department of Public Instruction and spent more than 24 years as a school district business manager.
“Because of the incident that happened, we want to just make sure that we’re doing our investigation appropriately and making sure that every single T’s crossed and I’s dotted. And so I can’t speak to personnel matters,” Cassellius said.
Charles Burbridge will assist Buros through the Council of the Great City Schools. Burbridge has more than 40 years of finance experience, including serving as CFO for the Atlanta and DeKalb County school districts in Georgia, according to the district.
12 News asked Cassellius directly on Tuesday if any district employees were on leave because of the incident, she would not confirm citing the ongoing investigation.
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