Five agencies are examining Charlotte-Mecklenburg Schools' finances, and a former federal prosecutor says investigators could be looking at fraud, kickbacks and bribes.
Jonathan Vogel, a former prosecutor in the U.S. Attorney's Office in Charlotte who practices education law, laid out the potential scope of the probe in an interview with WSOC-TV published Thursday, Oct. 8. The investigation is not limited to how CMS handled federal dollars, Vogel said.
Investigators will examine whether money was intentionally steered to individuals or entities that provided no services and whether contracts were misrepresented to the school board. They will also look at whether anyone received kickbacks or bribes, Vogel said.
"This is real. This does get investigated federally," Vogel said. "This does get prosecuted. People can go to jail if the facts uncovered demonstrate a fraudulent scheme."
The FBI, U.S. Department of Justice, North Carolina State Bureau of Investigation (SBI), the state auditor's office and the Department of Public Instruction are all involved, according to WSOC-TV. CMS is North Carolina's second-largest school district, serving about 139,000 students across 185 schools, including Ballantyne's Ardrey Kell and Ballantyne Ridge high schools.
No one has been criminally charged.
The FBI and DOJ have not disclosed what specifically they are investigating. Vogel cautioned that confirmation of the probe does not mean charges are coming.
What investigators can do
Vogel said FBI agents are interviewing people who agree to meet voluntarily. Investigators also have subpoena power through the grand jury process, allowing them to compel documents and, in some cases, testimony. Grand jury proceedings are secret.
Separately, WBTV reported on Tuesday, Oct. 6, that subpoenas have already been issued and that the federal investigation began before the Sept. 18 request for a state-level criminal inquiry. WBTV also reported questions about noncompliance in the Exceptional Children department, which supports students with disabilities.
Contracts at the center
The investigation follows reporting by WSOC-TV that Board Chair Stephanie Sneed is tied to three contracts with the Raleigh law firm Poyner Spruill. That firm then used CMS funding from two of those contracts to pay consultant Raki McGregor, according to a WSOC-TV review of district contracts. The district has directly or indirectly paid the McGregor family more than $1 million since the start of the 2024 school year, WSOC-TV found.
Vogel said Poyner Spruill may try to shield its discussions with the CMS board under attorney-client privilege, but that privilege has an exception when fraud is alleged.
No public response from Sneed, McGregor or Poyner Spruill regarding the investigation appeared in available reporting.
Timeline and leadership
CMS' roughly $2.1 billion budget draws more than half its funding from the state and about 35% from Mecklenburg County, according to QC News. Federal dollars make up only a small share. State Auditor Dave Boliek said on Oct. 6 that his office is working with CMS "to answer these tough questions that I know many citizens have."
Acting Superintendent Melissa Balknight agreed on Oct. 8 to postpone her planned retirement to stay on through the search for a permanent leader, WBTV reported.
Vogel said fraud investigations of this scope typically take six months to a year, and sometimes longer.
