Company that claims to help school districts under investigationPosted: Updated:
PHOENIX – An organization that is supposed to help over a dozen school districts across the Phoenix area is under investigation.
At issue are hundreds of thousands of dollars spend on questionable expenses.
The organization says it saves local schools millions of dollars but the Arizona Attorney General’s Office says Valley Schools Management Group has spent half a million dollars of public money and gifts.
Officials raided the Deer Valley Unified School District last month and details surfaced Friday about what the attorney general’s office was looking for.
VSMG says it provides professional management of insurance pools and trusts to more than 20 schools and districts in the Phoenix area.
The group’s chairman and CEO Tom Boone is also a school member at Deer Valley as well as a state legislator.
Boone and others are accused of inside contracts, big salaries and inappropriate spending. The affidavit says VSMG spent about $60,000 on golf resorts and memberships and an additional $7,000 at the PGA Tour superstore.
VSMG is also accused of spending over $100,000 on skyboxes at the Phoenix Open over the last two years.
The organization may have also spent close to $50,000 on Diamondbacks tickets. According to the affidavit, VSMG claims the company was spending money on marketing to get other districts to join.