FOR IMMEDIATE RELEASE
NEWS RELEASE
October 10, 2014
For More Information, contact:
Luther Strange
Joy Patterson (334) 242-7491
Alabama Attorney General
Claire Haynes (334) 242-7351
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AG ANNOUNCES CONVICTIONS OF FORMER STATE DEPARTMENT
OF EDUCATION OFFICIAL, SPOUSE FOR FELONY ETHICS CHARGES
(MONTGOMERY) -Alabama Attorney General Luther Strange announced the
convictions today of Dr. Deann K. Stone, the former Director of Federal Programs for the
State Department of Education, and her husband, Dave Stone, an employee of Information
Transport Solutions, Inc., on felony state ethics charges. Both are from Wetumpka.
Attorney General Strange’s Special Prosecutions Division partnered with agents and
auditors with the U.S. Department of Education’s Office of Inspector General in an
investigation into the allocation of $49,000,000 in federal grant money under the American
Recovery and Reinvestment Act of 2009 for failing Alabama schools. The Office of
Inspector General’s February 2012 Audit Report found a conflict of interest and raised
serious concerns about the 2010 awarding of Recovery Act School Improvement Grant
funds to local education agencies.
“These defendants not only betrayed taxpayers but also the citizens and students of
Alabama who were counting on scarce resources to help schools that were in dire need,”
said Attorney General Strange.
Prosecutors presented evidence at a trial that began on September 29 and lasted
through October 9 showing that with the help of her husband Dave, Dr. Deann Stone took
actions to manipulate the grant process to ensure that school districts that have agreements
with Dave Stone’s business employer received millions in federal grant money. The jury
deliberated for part of Friday morning before returning guilty verdicts for both Deann K.
Stone and Dave Stone as charged in the following five counts:
- Count 1 charged Deann Stone and Dave Stone with violating the state ethics law by
intentionally using Dr. Stone’s official position as Director of Federal Programs to obtain
personal gain for themselves or Information Transport Solutions, Inc., through the
allocation and funding of funds from the American Recovery and Reinvestment Act of
2009, Title I, Part A, 1003(g) School Improvement Grant to the Lowndes County School
System; - Count 2 charged Deann Stone and Dave Stone with violating the state ethics law by
intentionally using Dr. Stone’s official position as Director of Federal Programs to obtain
personal gain for themselves or Information Transport Solutions, Inc., through the
allocation and funding of funds from the American Recovery and Reinvestment Act of
501 Washington Avenue * Montgomery, AL 36104 * (334) 242-7300
www.ago.alabama.gov Page 2 of 2
2009, Title I, Part A, 1003(g) School Improvement Grant to the Marengo County School
System;
- Count 3 charged Deann Stone and Dave Stone with violating the state ethics law by
intentionally using Dr. Stone’s official position as Director of Federal Programs to obtain
personal gain for themselves or Information Transport Solutions, Inc., through the
allocation and funding of funds from the American Recovery and Reinvestment Act of
2009, Title I, Part A, 1003(g) School Improvement Grant to the Coosa County School System; - Count 4 charged Deann Stone and Dave Stone with violating the state ethics law by
intentionally using a state computer, a state email account, the human labor and/or the
time of Dr. Stone and another state employee, or documents and/or materials created by
state employees, for their private or business benefit through the allocation and funding
of funds from the American Recovery and Reinvestment Act of 2009, Title I, Part A,
1003(g) School Improvement Grant to the Lowndes, Marengo, and Coosa County School
Systems; and - Count 5 charged Deann Stone and Dave Stone with violating state ethics law by
intentionally soliciting or receiving meals, transportation, and hotel expenses in Boston,
Massachusetts from Cambium Learning, Inc., for themselves for the purpose of influencing
official action.
Sentencing is set for December 15, 2014, when the defendants will face potential
penalties of two to 20 years and fines of up to $30,000.00 for each of the five counts for
which they were convicted.
“I want to thank the Office of Inspector General for performing a thorough audit of the
federal stimulus money intended to help struggling Alabama schools and the Investigative
Services Branch for partnering with my office to investigate this matter,” said Attorney
General Strange. “This kind of cooperative effort among state and federal law enforcement
agencies maximizes our resources to more effectively combat crimes of public corruption.”
“As the law enforcement arm of the U.S. Department of Education, ensuring that
those who steal Federal education funds or game the system for their own selfish purposes
are stopped and held accountable for their criminal actions is a big part of our mission,”
said Kathleen S. Tighe, Inspector General of the U.S. Department of Education. “That’s why
I’m proud of the work of OIG and our law enforcement colleagues for holding these
individuals accountable for their criminal actions.”
The Attorney General commended Assistant Attorneys General Bill Lisenby and
Pete Smyczek and Special Agents in the Attorney General’s Special Prosecutions Division,
as well as Special Agents and Auditors of the United States Department of Education,
Office of Inspector General.
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