SALT LAKE CITY — The connection between former Davis School District secretary Stella Smith and John and Susan Ross was addressed almost immediately at Smith's sentencing in federal court Thursday.
The Rosses were convicted of bilking the school district of almost $4 million. John Ross paid a $500 fine. Susan Ross was sentenced to three years probation.
Smith, who bilked the district of more than $300,000, was sentenced Thursday to serve one year in prison.
As Susan Ross' secretary, Smith was apparently unaware of her boss' actions and cooperated with prosecutors once the crime came to light. She faced 18 to 24 months in prison. The judge knew, as did attorneys, that the cases would be compared and probation would appear to be a viable option.
But U.S. District Judge Dee Benson said that while he would order a sentence below the recommended guidelines, he wouldn't go as low as probation. He said he based his decision to sentence Smith, 57, to one year and one day in prison, a supervised release term of five years and payment of $324,579 in restitution on the facts before him in this specific case.
"I don't want there to be disparate sentences," Benson said. "But I don't see these as the same crimes. … I think she regrets it but, like many people, she regrets that she got caught."
Smith pleaded guilty to one count of mail fraud in October 2007. Smith admitted that while working as Susan Ross' secretary in the Title I program — which is meant to aid students who are minorities, disadvantaged or disabled — she submitted paperwork to the school district to have E.B. Smith Co. approved as a vendor. Using that fictitious company name, Smith submitted purchase orders for books that had not been requested by district employees.
Smith then received Title I checks from the government, which she deposited into a bank account controlled by her and her husband.
"We accept the fact that they are two different judges who each have their own individual opinion, but you can't disregard the fact that Susan Ross stole some $4 million and my client took $325,000 and she's doing time," Smith's attorney, Paul Grant, told the Deseret News.
"That said, I think Judge Benson gave her a fair sentence, except for the disparity issues."
Grant made it clear that Smith and Susan Ross' crimes were independent and that it appeared the two women were unaware of the other's schemes. Grant said Smith stole "one-tenth" of what the Rosses stole from Davis School District and it was confirmed in court that the investigation of Smith led to the investigation of the Rosses.
Smith told the judge she allowed her "personal family crisis to cloud my judgment," stating that she committed the crime when she was "desperate" to provide for her family after her husband lost his job. She apologized to her family and to those she worked with in the school district, saying that she misses her former job every day.
"I want them to know how much I regret my actions and wish I could turn back the clock," she said. "I will spend the rest of my days correcting the wrong I committed."
John and Susan Ross were convicted last year for their respective roles in an embezzlement operation Susan Ross ran for several years while working for the school district as head of the Title I program. At the time, John Ross was employed as a federal grants specialist.
Federal prosecutors alleged that Susan Ross ran a shell company, which supplied the Davis County School District with illegally photocopied versions of books at inflated prices and bilked the district out of close to $4 million.
Susan Ross pleaded guilty to one count of money laundering and was sentenced by U.S. District Judge Clark Waddoups to 36 months of probation, with the first six months to be served in home confinement; 3,000 hours of community service; and a $10,000 fine. She was ordered to pay $350,115 in restitution.
John Ross was sentenced to pay a $500 fine for one count of placing fraudulent copyrights on stolen texts, a misdemeanor.
Prosecutors said that while Smith was not a co-defendant in the Ross case and it was important to send a message that "public employees cannot take advantage of the public for personal gain," Smith's case would be seen in the "context" of the Ross case and the court should avoid disparities.
Benson called Smith's crime "sophisticated," "systematic" and "deplorable" and he based his sentence on the "length of time and amount of money taken."
By sentencing her to more than one year in prison, Benson is allowing Smith to potentially receive 54 days off of her sentence for good behavior. She is to report to the prison on April 15.
e-mail: emorgan@desnews.com