In February 2021, five officials in the Athens City Schools and Limestone County School systems were indicted in a scheme where they allegedly defrauded the state of Alabama by claiming private school students were enrolled in a virtual Athens City Schools academy.

William “Trey” Holladay, William Richard “Rick” Carter, Gregory Earl Corkren, David Webb Tutt and Thomas Michael Sisk were indicted on charges relating to fraud.

According to federal court records, the defendants submitted a joint plan for repaying $5.7 million to the Alabama State Department of Education.

Former Athens Superintendent Holladay and former Limestone County Superintendent Sisk, along with Corkren and Tutt have entered guilty pleas.

Carter took his case to trial earlier this year and was found guilty of one count of conspiracy to commit wire fraud, four counts of wire fraud and two identity theft charges after nearly four weeks of testimony.

Carter has requested a new trial.

“On May 6, 2022, the parties, as well as the United States Probation Office, received from the Alabama State Department of Education a written request for restitution,” said court documents. “The ALSDE seeks restitution in the amount of $5,731,897.20. This number reflects the amount of Foundation Program payments improperly paid to Athens City Schools as a result of the fraudulent scheme executed by the defendants. In the request, the ALSDE allocates these payments between the two relevant school years. For the 2016-2017 school year, the ALSDE. As far as the parties are aware, that request constitutes the only restitution request received in the case caused ACS to be paid $3,142,696.80 for what were in fact private school students. For the next school year, the ALSDE caused ACS to be paid $2,589,200.40 for private school students.”

The defendants agree Holladay should be liable for 50 percent, totaling $2,865,948.60. Carter and Corkren would be responsible for repaying $1,303,514.28 each. Tutt would repay $258,920.04.

“In apportioning liability, it is important to consider that only Holladay, Carter and Corkren participated in the submission of false information during the 2016-2017 school year. Tutt did not become involved until later. As such, the parties, other than Carter, agree that only those three defendants should be ordered to repay the restitution amount resulting from that school year,” said court documents.

The defendants agree Sisk should not be liable to make repayment.

“During the scheme, Sisk was the superintendent of the Limestone County School System. Although Sisk caused LCS to fraudulently report to the ALSDE the number of students enrolled in the system, the ALSDE did not make any payments to LCS based on these false reports. Moreover, the government did not obtain any evidence indicating that Sisk played any role in facilitating ACS’s submission of false information to the ALSDE. Because LCS’s false submissions did not result in loss and Sisk did not cause ACS to send false information, Sisk should not be liable for any amount of restitution,” said court documents.

Holladay, Corkren, Tutt and Sisk have agreed to these repayment terms, but Carter has not.

“No party, except for possibly Carter, disputes these calculations. Moreover, no party, except for possibly Carter, contests the ALSDE’s status as a victim and entitlement under the Mandatory Victims Restitution Act to recover from the defendants monies paid to ACS for the education of students who were in fact full-time private school students,” said court documents. “As a threshold matter, the parties, except for possibly Carter, agree that Defendant Sisk is not liable for any portion of the amount owed to the ALSDE.”

The repayment plan is now up for approval by the federal judge presiding over the case.

Sentencing for the defendants is June 28, at 8 a.m. at the federal courthouse in Montgomery.