017: Embezzlement Charges for Inadequate Compliance by a Federal Contractor


A privately held company offered products and services to a local school district that received funding from the federal government. The contract between the small company and the school district included a stipulated budget. Each year the company and the school district renewed the contract. The business owner failed to review the budget. As a result of making changes to the budget, the business owner exposed himself to potential problems. A government investigation led to massive legal expenses and a criminal prosecution.

The information presented in this case study comes from the criminal indictment and case records against Shulick.