U.S. Attorney's Office
Eastern District of Texas
(409) 839-2538
May 13, 2015

Collin County Woman Sentenced in Plano ISD Embezzlement Scheme

PLANO, TX—A 68-year-old Prosper, Texas woman has been sentenced to federal prison in connection with her role in a conspiracy to embezzle millions from the Plano Independent School District, announced U.S. Attorney John M. Bales today.

Carol Ann LaRue pleaded guilty on June 24, 2014, to conspiracy to commit federal program fraud and was sentenced to 30 months in federal prison today by U.S. District Richard Schell. LaRue was also ordered to pay restitution in the amount of $1,252,556 to Plano ISD.

According to information presented in court, LaRue owned and operated Fire Systems Specialists (FSS) and Digital Security Solutions (DSS), companies supposedly in the business of maintaining fire safety systems and security systems. Between May 2011 and December 2013, LaRue conspired with Plano Independent School District employee, Kris Wilson Gentz, to defraud Plano ISD by submitting fraudulent invoices for services that were not rendered and products that were not provided. When payment was made to FSS and DSS, LaRue and Gentz would split the profits between themselves. As a result of the fraudulent scheme, LaRue is responsible for losses to Plano ISD of $1.2 million and Gentz was responsible for losses of $2.6 million. Gentz pleaded guilty to the same charges and was sentenced to 51 months in federal prison on Apr. 16, 2015.

This case was investigated by the Federal Bureau of Investigation and the Department of Education and prosecuted by Assistant U.S. Attorney Christopher A. Eason.

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