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Former School Superintendent Steals Hundreds of Thousands from District

Updated: Thursday, November 21 2013, 10:49 PM EST
DAYTON, Ky. (WKRC) -- A tri-state school district will recover hundreds of thousands of dollars.

Officials say the money was stolen by the former superintendent.

auditor of public accounts for the commonwealth announced the
settlement after conducting a special examination of the Dayton,
Kentucky school district. 

An accounting firm that conducted
annual audits failed to discover the fraud.  Under the terms of the
settlement, Rye will return 473,000 dollars to the district.  The
accounting firm of Rankin and Rankin will pay 38,000 dollars.

say Rye cheated the district out of thousands of dollars in retirement
related benefits, sick and annual leave, fuel purchases, and false
reimbursement claims.  He also threatened staff members who questioned
him about the expenses.

Rye has not been charged with a crime.  Officials say the FBI is investigating him.

Watch video HEREFormer School Superintendent Steals Hundreds of Thousands from District

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