Scottsdale Unified School District—Criminal Indictment—Conflict of Interest (REV January 2019)

The Arizona Attorney General’s Office requested the Office of the Auditor General to assist in its investigation of possible conflict-of-interest violations by Laura Smith, former chief financial officer of Scottsdale Unified School District (District). Our joint investigation revealed that from February 2017 through January 2018, Ms. Smith failed to disclose her substantial interest with a district vendor, The Professional Group Public Consulting, Inc. (PGPC), and she participated in district decisions affecting PGPC. On January 23, 2019, the Arizona Attorney General’s Office presented evidence to the Arizona State Grand Jury. The action resulted in the indictment of Ms. Smith on 12 felony counts of conflicts of interest and fraudulent schemes.