Escaping the Malaise.

School AdministratorVol. 53 Nbr. 9, October 1996

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Escaping the Malaise.

First-Hand Guidance for Ethical Behavior

I was heartstruck recently to discover that a colleague of mine, an admired superintendent, was fired over her involvement in a pyramid scheme.

She and several other prominent education leaders, including one of her board members, several school district employees, and the president of the local community college, were indicted by a grand jury on charges of operating an illegal pyramid scheme in which $1 million changed hands. The Los Angeles Times reported that school district time, stationery, copy and fax machines, and telephones were used in this illegal activity, known as a "Ponzi scheme" or a "gift exchange program." More than 1,000 people, some of them educators, invested up to $2,000 each with the assurance they would make $16,000 in profit.

Today these school administrators face f...

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