Department of Justice
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FOR IMMEDIATE RELEASE
August 6, 2014

Three former Beaumont ISD Employees Indicted for Fraud

              BEAUMONT, Texas — Three former Beaumont Independent School District employees have been indicted for embezzling money from a program receiving federal funds in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

              Daryl Glenn Johnson, 44,  Erin Gipson Johnson, 38, and Kailyn DeShondra Pete, 25, all of Beaumont, were indicted by a federal grand jury today on charges of conspiracy and fraud upon programs receiving federal funds.

              According to the indictment, from July 2009 through June, 2012, Daryl Johnson, who was employed as the warehouse supervisor for the school district, is alleged to have had 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 is alleged to have 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.  Pete is alleged to have paid Daryl Johnson $500.00 from each of the BISD payroll checks she received.  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.

              If convicted, the defendants each face up to 10 years in federal prison.

              This case is being 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.

              It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.

 

 

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