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MILWAUKEE - Milwaukee Public Schools lost hundreds of thousands of dollars in a bank impersonation scam, the district announced Tuesday.
Bank impersonation fraud
What we know:
According to a message sent to MPS finance team members, the district became aware that it was the victim of bank impersonation fraud and notified authorities on Monday. The district initially lost $450,000 in the scam, but recovered $255,000 and is working to recover the remaining $195,000. The district also said it is implementing "short-term and long-term controls to protect the district's finances."
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What we don't know:
MPS released a list of best practices, but did not elaborate on what the "short-term and long-term controls" include. Details of the fraud – such as how and when it happened – have not been released.
Milwaukee Public Schools (MPS)
What they're saying:
In a statement, MPS Superintendent Brenda Cassellius said:
"This is a sobering reminder of the sophisticated financial scams that occur every day across the country. We are taking swift and immediate action to strengthen our internal procedures to prevent this from happening. We also are working with our partners at US Bank to recover the remainder of the funds. We are grateful to our partners in federal, state, and local law enforcement for their work to investigate this matter and to hold those responsible accountable."
What's next:
In addition to the criminal investigation, MPS is conducting its own internal investigation. MPS said Jennifer Buros, who has been the district's deputy chief financial officer since the summer, will serve as acting chief financial officer. Charles Burbridge with the Council of the Great City Schools, will assist Buros with that investigation. The two bring more than 60 combined years of experience with school business and finance.
MPS budget
Big picture view:
In May, the Milwaukee Board of School Directors approved a $1.6 billion budget for the 2026-27 school year. That budget took effect July 1. The $450,000 sum represents less than one-tenth of one percent of the district's budget.
This is a developing story. Check back for updates.
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The Source: Information in this story is from Milwaukee Public Schools and prior FOX6 News coverage of the district.