Ex-Scottsdale schools official indicted for alleged conflict of interest

PHOENIX — A former top official at a Phoenix-area school district has been indicted on 11 felony charges for allegedly breaking the state’s conflict of interest laws.

Laura Smith, the former chief financial officer at the Scottsdale Unified School District, was indicted on two counts of fraudulent schemes and practices and eight counts of conflict of interest by a grand jury on Monday.

The indictment alleged that Smith “knowingly falsified, concealed or covered up a material fact by any trick, scheme or device or made or used any false writing or document knowing such writing or document contains any false, factitious or or fraudulent statement or entry” between Feb. 24 and May 3, 2017.

Smith was also indicted for allegedly having and failing to make known a “substantial interest in any decision of a public agency” between March 30 and Oct. 30, 2017.

The alleged conflict of interest was brought to light after the district entered into a monetary agreement with Professional Group Public Consulting, Inc., a company that both Smith and her sister had ownership interests in.

A “series of events” that caused the community to question the ethics of its district leaders started back in 2016, the Scottsdale Independent reported in January.

Attorney Susan Segal and special agents with the Arizona Attorney General’s Office and the Office of the Auditor General investigated the case.

Barbara Perleberg, the head of the school district’s governing board, said in a statement that officials appreciate the attorney general’s “diligent work” in the “long and careful investigation.”

“This has been an extremely difficult chapter in SUSD’s history,” part of the statement read.

“While we are anxious to close that chapter and move forward, we also want to be sure we understand exactly how those mistakes happened, so we can learn from the past and do better in the future.”

Smith resigned from her position with the school district in January after being put on administrative leave.

Assistant Attorneys General Joseph Waters and Mary Harriss will be prosecuting the case.

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