ORANGEBURG, S.C. — A former official in the Orangeburg County School District (OCSD) is scheduled to appear in federal court in January to plead guilty to a $550,000 fraud scheme.
According to papers filed with the U.S. District Court of South Carolina, Orangeburg division, former media communications specialist David Cortez Marshall, Jr. has been charged with wire fraud for allegedly purchasing 875 cameras for use in remote education and then selling those items back to OCSD at a markup of over $130,000.
Between October 2020 and February 2021, Marshall used his position at OCSD to purchase the cameras from a legitimate business -- Owl Labs -- and then, using a falsified South Carolina Department of Revenue tax-exempt form, sent OCSD an invoice demanding payment of $60,000 in South Carolina sales tax.
Marshall had set up shell companies, or "corporate alter egos," using the names of Flex Technologies, LLC; Level 8 Communications; and Orangeburg County Purchasing, LLC, in order to defraud Owl Labs and OCSD by generating false invoices, business records, and using forged signatures.
Overall, Marshall succeeded in obtaining over $550,000 through his "false and deceptive procurement scheme, his generation of fraudulent tax records, and his retention of monies owed to Owl Labs."
Following his arrest, the Orangeburg County School District released a statement that said:
We have been disappointed to discover the fraudulent activities a former employee was engaged in during his employment with our district.
"The employee worked previously for Orangeburg County School District 5, and, upon consolidation, transitioned employment to OCSD until his resignation in March 2021.
Internal procurement officers first identified the concern last school year, which was originally related to investigation surrounding a purchase order and state contractor status. The District considers this a very serious matter and has appreciated the assistance of state and federal authorities in investigating our concerns. We will continue working collaboratively with law enforcement and any impacted suppliers to seek recovery of funds."
The plea agreement states Marshall must make financial restitution, plus $100 for each felony count for which he is convicted.
The penalty for the wire fraud offense is up to 20 years in prison, a fine of up to $250,000, supervised release of up to 3 years, and a special assessment of $100.