Charlotte-Mecklenburg Schools paid $150,000 in consulting fees through a law firm but has no records of work delivered. The people who could explain the arrangement have not publicly done so.
A month after then-Superintendent Crystal Hill's memo prompted state investigations and coincided with an existing federal probe into CMS finances, four basic questions about the contracting mechanism remain publicly unanswered, the Charlotte Ledger reported on Oct. 19.
The questions center on a $30,000-a-month consulting retainer paid to Qonnect LLC, a firm owned by Raki McGregor, through Raleigh law firm Poyner Spruill. CMS documents show Poyner Spruill signed a contract with the district on Feb. 4 to assist with a teacher affordable-housing initiative, the Ledger reported. Board member Stephanie Sneed, then board chair, Chief Financial Officer Kelly Kluttz and acting General Counsel Anna Hehenberger signed for CMS.
Two days later, Poyner Spruill partner Katie Cornetto sent McGregor a letter confirming his company would consult on the project at $30,000 a month, paid only if CMS reimbursed the law firm. Hill said she did not know McGregor had been hired by the firm when the contract was signed.
No records of work produced
No work product exists on file.
CMS told the Ledger it has no records of anything produced by McGregor or Qonnect on the housing project. The district also has no records from a separate $220,000 compliance assessment Poyner Spruill was hired to conduct starting in June, for which McGregor's firm was to receive $132,000, according to the Ledger. Public records show CMS paid Poyner Spruill $150,000 in monthly consulting retainer fees from April through August, the Charlotte Observer reported.
The consulting agreement listed McGregor's duties in general terms: advice on "political, organizational and regulatory dynamics," guidance on "stakeholder engagement sequencing and tone" and support in "repairing or restructuring opportunities affected by misalignment, timing or perception," the Ledger reported. The agreement did not identify specific reports, deadlines or minimum work hours.
Sneed's role and ties to McGregor
Sneed stepped down as board chair after Hill's account linked her to the contracting but remains on the board. According to N.C. State Board of Elections records cited by the Ledger, McGregor donated $500 to Sneed's reelection campaign in October 2025. The two also pitched a consulting proposal to the Mecklenburg County Sheriff's Office this spring, which the office turned down, the Ledger reported.
No evidence has surfaced showing Sneed personally profited from the CMS contracts, the Ledger reported.
At the Oct. 13 board meeting, Sneed read from a prepared statement. She said allegations and mischaracterizations had been repeated as facts and that an investigation is not a finding of wrongdoing.
Sneed, McGregor and CMS have offered no public explanations of the facts Hill presented, which she supported with more than 200 pages of records, according to the Ledger.
Employee complaint alleged pressure to pay
A CMS employee filed a human resources complaint on Aug. 21 alleging Sneed pushed to process payments despite staff warnings that the arrangement lacked a proper contract and violated board policy, the Observer reported. The complaint alleged Sneed told the employee the board did not need a contract and had the authority to proceed.
CMS policy allows contracts up to $250,000 without a full board vote. But a March 4 revision extended the Poyner Spruill contract by 11 months, potentially pushing its value above that threshold, the Ledger reported. The full board does not appear to have voted on or been informed of the extension.
Multiple investigations underway
The Charlotte Observer reported Oct. 16 that the FBI and U.S. Attorney's Office have confirmed an active federal investigation related to CMS. That probe began before District Attorney Spencer Merriweather requested the State Bureau of Investigation (SBI) criminal investigation in September. Federal officials have not identified the investigation's specific focus.
Jonathan Vogel, a Charlotte lawyer and former federal prosecutor, told the Ledger the contracting practices sound suspicious based on public information. He said the key distinction is whether the arrangement amounts to sloppy paperwork or a scheme to pay someone with taxpayer money for no work.
"It essentially requires evidence of a dishonest scheme of intentionally defrauding someone of money," Vogel said of the wire-fraud standard prosecutors would apply.
Vogel said investigations like this are document-intensive and could take six to 12 months. Families with questions can contact CMS at 980-343-3000.
