Guilty verdicts for couple accused of funneling millions in federal grant money

A former state education official and her husband have been found guilty of violating state ethics charges.

Former Alabama Department of Education employee Deann Stone and her husband, Dave Stone, were convicted on five felony ethics charges in a Montgomery courtroom on Friday. According to a statement from Alabama Attorney General Luther Strange, Deann worked as the director of federal programs for the state Department of Education and improperly used her position to manipulate the awarding of federal stimulus funds before her resignation in 2010.

State and federal investigators in 2012 began investigating the allocation of $49 million of grant money. During a trial last month, state prosecutors said Deann took actions to manipulate the grant process to ensure school districts with ties to her husband’s Wetumpka-based technology business received the money.

Federal grant money from the American Recovery and Reinvestment Act of 2009 was funnelled to schools in three Alabama counties with ties to Information Transport Solutions, Inc. Kathleen Tighe, Inspector General of the U.S. Department of Education, said on Friday she proud to hold the pair accountable for their actions. “Ensuring that those who steal federal education funds or game the system for their own selfish purposes are stopped and held accountable for their actions is a big part of our mission,” said Tighe.

Deann and Dave Stone each face up to 100 years in prison and $150,000 in fines for all five felonies, according to the statement. Sentencing is set for Dec. 15.