Feds seize former Pontiac school official's Jaguar, cash in probe

Detroit— The FBI has seized a 2002 Jaguar belonging to a former Pontiac School District official and more than $34,000 amid an ongoing probe of the cash-strapped district's finances, The Detroit News has learned.

The Jaguar XK8 belongs to Jumanne Sledge, a former Pontiac associate superintendent who resigned in August amid allegations of improper use of school district and federal money. He later was hired as deputy superintendent by Inkster Public Schools.

The seizures shed light on an FBI investigation that coincides with a whistle-blower lawsuit alleging financial wrongdoing inside the troubled district. Former interim superintendent Jonathan Brown sued the district this month in Oakland County, alleging he was fired in November after uncovering fraud and misuse of district funds.

"What the FBI is going after is an apparently incredible rip-off of taxpayer money," Brown's lawyer Deborah Gordon said in an interview. "It appears that we're talking about a really significant amount of money that has been stolen from the district."

FBI spokesman Simon Shaykhet declined comment on the seizures, which were revealed in warrants unsealed in federal court.

In the whistle-blower suit, Brown alleges he uncovered unauthorized payments to staff, misuse of school district credit cards and says contracts were awarded to vendors without appropriate approvals. He is suing for unspecified damages and to reclaim his job.

The lawsuit does not mention Sledge.

Sledge resigned Aug. 23. He did not respond to an email seeking comment and publicly listed phone numbers for Sledge have been disconnected.

"Although he resigned from the district, his resignation came amidst numerous allegations involving the abuse of his authority and improper use of district and federal dollars," Pontiac schools interim Superintendent Walter Burt said in a prepared statement.

The seizure warrants were executed Jan. 26-27, according to federal court records.

Affidavits that would offer justification for the seizures are sealed in federal court.

On Jan. 26, FBI agents seized $34,619 from a Michigan First Credit Union account. The account holder is not identified in court records.

According to the warrant, U.S. Magistrate Judge Laurie Michelson wrote that she was satisfied probable cause existed to seize all the money found in the checking and savings accounts.

At 6:30 a.m. Jan. 27, agents seized a 2002 Jaguar XK8 belonging to Sledge. A copy of the seizure warrant and a receipt for the car were left at Sledge's home on Augusta Court in Bloomfield Hills.

Sledge paid $260,000 in October 2010 for the home, which overlooks the Wabeek Country Club golf course.

The Jaguar seizure surprised Inkster Board of Education Trustee DeArtriss Richardson.

"It's alarming — very alarming. This is something that Inkster schools will have to look at," she said.

Richardson said she did not know about the FBI probe when Sledge was hired last fall. He had worked in Pontiac since August 2009.

The seizures and whistle-blower suit come at a time when the Pontiac School District, which has roughly 5,600 students, is coping with a multimillion-dollar deficit. The district has submitted a deficit elimination plan that's expected to wipe out $24.5 million in red ink by 2014.

The Pontiac Board of Education approved the plan, which includes $26 million in cuts, in December.