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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of Texas

Tuesday, June 24, 2014

Collin County Woman Guilty In Plano ISD Embezzlement Scheme

Department of Justice
Office of Public Affairs

 PLANO, Texas – A 68-year-old Prosper, Texas woman has pleaded guilty 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 to an Information charging her with conspiracy to commit federal program fraud today before U.S. Magistrate Judge Don D. Bush.

            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, Plano ISD suffered a loss that did not exceed $7 million.  LaRue is responsible for losses that do not exceed $2.5 million.  Gentz pleaded guilty to the same charges on Apr. 1, 2014 and is awaiting sentencing. 

"The other shoe has now dropped in the Kris Gentz-Carol LaRue fraud scheme,” said U.S. Attorney Bales.  “These defendants not only cheated the taxpayers in Plano ISD, they robbed the children. I congratulate the investigative team for a job well done. This case also should serve as a warning to others who somehow believe that they can rip off the public and not be held accountable.  There will always be a reckoning.” 

LaRue faces up to five years in federal prison.  A date for sentencing has not yet been set.

This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher A. Eason. 

Updated March 12, 2015