Woman guilty of $3M Detroit schools fraud

DETROIT, June 30 (UPI) -- A prominent Detroit art gallery owner has been convicted of overcharging city schools for a wellness program and paying a kickback to a school official.

A jury found Sherry Washington guilty Wednesday of conspiracy and money laundering, the Detroit Free Press reported.

She could be sentenced to as much as 20 years in prison.

Washington's company, Associates for Learning, got a no-bid contract to educate school employees on health and fitness. She was paid $3.3 million for a program that was originally supposed to cost $150,000.

Prosecutors said she paid a $150,000 kickback to Stephen Hill, a school executive. Defense lawyers said she was paid for three years in advance and called the deal a legitimate one.

Seven other people, including Washington's two associates in the business and her sister, Dr. Gwendolyn Washington, have pleaded guilty. An eighth defendant died.

"These crimes were born of greed. They were fueled by arrogance and a sense of entitlement," Assistant U.S. Attorney J. Michael Buckley said in his closing argument. "Sherry Washington is an opportunist. She's smart. She saw a good thing, and she jumped on it."