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

Three Former Beaumont ISD Employees Sentenced in Warehouse Fraud Scheme

BEAUMONT, TX—Three former Beaumont Independent School District employees have been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Daryl Glenn Johnson, 44, of Beaumont, pleaded guilty on Dec. 4, 2014, to conspiracy and was sentenced to 33 months in federal prison today by U.S. District Judge Ron Clark. Erin Gipson Johnson, 38, of Beaumont, and Kailyn DeShondra Pete, 25, of Beaumont, each pleaded guilty on Dec. 4, 2014 to fraud upon programs receiving federal funds. They were both sentenced to five years’ probation today by Judge Clark.

Daryl Johnson was ordered to pay $284,039.42 in restitution. He is jointly and severally liable with Erin Johnson for $193,998.37, and jointly and severally liable with Kailyn Pete for $90,041.05.

According to information presented in court, from July 2009 through June, 2012, Daryl Johnson, who was employed as the warehouse supervisor for the school district, first his wife, Erin Johnson, and then a friend, Kailyn Pete, placed on the BISD payroll as temporary employees. However, neither Erin Johnson nor Kailyn Pete ever actually worked as a BISD warehouse employee. Daryl Johnson had the autonomy to hire temporary warehouse employees on his own, and the authority to determine how many hours they would be paid, and could do so unilaterally and without the authorization or direct knowledge of anyone else. Daryl Johnson used this authority to fraudulently verify that both Erin Johnson and Kailyn Pete worked the hours indicated on their respective timesheets, which included extensive amounts of overtime when he knew that they in fact had not worked any of the hours. From July 2009 through May 2011, Erin Johnson was paid $193,998.37. During the timeframe of June 2010 through May 2012, Kailyn Pete was paid $90,041.05.

This case was investigated by the joint Task Force with the Jefferson County District Attorney’s Office, the Beaumont Police Department, and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Joe Batte and Christopher T. Tortorice.

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