John and Susan Ross walked slowly through the courthouse, hands clasped and heads lowered after a hearing Friday in which Susan Ross followed her husband's lead and admitted her part in stealing millions of dollars from the Davis County School District.
Susan Ross spoke through tears as she pleaded guilty to money laundering before U.S. District Judge Clark Waddoups. The felony could result in up to 10 years in prison and fines of $250,000 and $350,115 in restitution to the school district. Court documents show John Ross in an earlier agreement with federal prosecutors pleaded guilty to one count of placing fraudulent copyrights on stolen texts, a misdemeanor that carries a $2,500 fine.
Prosecutors recommended Susan Ross serve a 27- to 33-month prison term, which is at the low end of federal sentencing guidelines. Susan Ross' sentencing is scheduled to take place Dec. 14.
Assistant U.S. attorney Barbara Bearnson said Susan Ross was driven by the greed that often motivates others who commit fraud. She said she did not believe the Rosses were let off the hook, especially considering the amount of money and property they will lose.
"Susan Ross is not getting off easy," said Bearnson. "She entered a felony plea of money laundering and we believe her plea was significant. We feel justice has been served today."
A 47-count indictment filed in November 2006 hit the couple with a number of charges including mail fraud and money laundering in the theft of upward of $4 million from the school district in an embezzlement scheme involving inflated prices on pirated books. The federal indictment says the two set up a company to supply photocopies of books that would normally retail for $15 to $25 to sell to the school district for as much as $80. Susan Ross acted as "the person on both ends of this transaction," Bearnson said.
At the time, Susan Ross was a director of federal programs, including Title 1, which is supposed to aid financially challenged students. John Ross was employed as a federal grant specialist. The jobs placed the couple in a position of power to develop their plan, which, according to the indictment, could have been hatched as far back as 1985 but wasn't put into play until 2000 and continued through 2005. It was aided by a company owned by two friends that allowed the Rosses to sell their bogus books to the school district.
Bearnson said John Ross pleaded to a more lenient misdemeanor charge because "he was not employed in the same capacity" as his wife and has serious health concerns.
The Rosses' plea deals require them to forfeit money from 10 different accounts totaling close to $790,000. They are also required to turn over two vehicles and homes in Layton, South Weber and Mountain Green. Bearnson said the total value of the forfeited money and property are "well over a million dollars."
e-mail: emorgan@desnews.com