Software scheme prompts lawsuit
JANESVILLE — The Janesville School District has filed a lawsuit against its former information technology manager, accusing him of racketeering and fraud in a scheme to profit from the district.
The district filed the lawsuit Wednesday against Brandon M. Keirns, 31, Milwaukee, Shannon Fermanian, Scottsdale, Ariz., and the four companies they are suspected of using to sell $215,000 in overpriced software to the district.
Keirns is accused of transferring about $104,000 from one of the company’s accounts to his personal bank account to buy a condominium in Milwaukee for more than $500,000.
The district has asked for a lien against the condo to recover money it lost. It also wants money for damages, attorney fees and the cost of its investigation.
According to the lawsuit:
Keirns is the managing agent of De Rekening Group, Error Help Group and Mithrax Networking. Fermanian does business under the name Avontur.
Keirns and Fermanian are suspected of using the companies in a conspiracy to defraud the district.
While employed with the district, Keirns was expected to make recommendations for equipment it should buy. He was expected to choose the most adequate, cost-effective equipment.
Keirns recommended the district buy networking software from Avontur. Keirns arranged for the school district to pay $18,000 a month for the software.
From January 2008 to November 2008, the school district paid more than $187,000 to Avontur. The district could have bought the software for $26,000 a year if Keirns had informed the district of other options.
Keirns also bought the school district anti-spam software called Mailmax for $1,562 a month. Keirns arranged for the district to buy the software from De Rekening Group without disclosing his interest in the company.
Error Help Group and Mithrax Networking also were part of the scheme.
“Such purchases were not in the best interests of the school district and were instead intended by the defendants to unlawfully enrich Keirns,” the lawsuit states. “The school district reasonably relied upon such acts of false representation to its detriment by incurring unnecessary costs for computer software.”
Keirns was hired in December 2007. He resigned in November 2008 after a computer virus harmed district computers for weeks.
In a criminal case, Keirns is charged with two felony counts of being a public employee entering into a contract with private interests. State statutes prohibit public employees from arranging contracts for their employer that benefit themselves.
Fermanian has not been charged in the case.
If convicted, Keirns faces a maximum three years and six months in prison and a $10,000 fine for each charge.
Keirns appeared in Rock County Court on Wednesday for an initial appearance. He remains free on a signature bond. His next scheduled court appearance is Jan. 12.
Nov 28, 2009 at 12:13 a.m.
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Well, if you check here, he's happily spending all those ill-gotten gains in Amsterdam. Let's hope he comes back!
http://www.facebook.com/search/?init=qui...
Nov 22, 2009 at 11:21 a.m.
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creativethinking, neither debts arising from fraud nor criminal fines or restitution are dischargeable in bankruptcy. It is not a "get away scot free" card as some believe.
Nov 22, 2009 at 8:52 a.m.
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the school holds some of the blame in this mess, sloppy to say the least. They file this lawsuit and then he files bankruptcy? Then the school is out all their legal fees with out a chance to recover any money. The criminal court can order restitution but I don't think there's much chance of that.
Nov 21, 2009 at 11:56 p.m.
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The person who would theoretically have been at fault was Doug Bunton, who has retired (as has Superintendent Evert, of course; whether this was the reason for either is confidential). I suggested in an earlier post that the School Board might want a technology oversight committee including community professionals in business and IT as well as educators, to at least provide a sanity check on project planning, bidding and major purchases. In the end, though, fraud is fraud: whatever system you have in place is potentially going to be pierced by someone who knows where the weak points are. Any oversight simply makes it MORE likely that someone will be caught, but it won't guarantee NEVER being defrauded.
Nov 21, 2009 at 9:22 p.m.
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This by no means would have been one of the largest IT purchases by the school district. Each year the district by hundreds of computers and related equipment and software.
In many organizations top managers are not knowledgeable regarding computer related purchases. That is why they hire IT professionals.
Nov 21, 2009 at 9:07 p.m.
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How did this slide by the District Business Manager? This had to be the first and biggest requisition from Kierns's IT department and the options and price weren't questioned by them? If he didn't ask the right questions he should have. He is responsible for all business transactions. I would think, like the captain of a ship, he is responsible for what they do. If he didn't know, he should have known!
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