Brian Wheeler began embezzling money from GHAPS in 2014. That same year, GHAPS voters passed an $18.9 million dollar technology bond intended to provide computers to all students. Despite his wages being garnished, Wheeler was put in charge of that money.
At that time, Scott Grimes was the GHAPS Director of Human Resources. His department would have been responsible for background checks, as well as handling wage garnishment processes. Wage garnishments do not indicate someone will commit a financial crime, but do place individuals at an elevated risk for fraud. GHAPS administration was aware of Wheeler’s financial issues, but did not see them as red flags. In fact, witness statements from the Grand Haven Department of Public Safety police report confirm that several employees were aware of Wheeler’s wage garnishments, and one employee even hand delivered thousand dollar checks to Brian Wheeler every two weeks.
This second witness statement indicates that despite having a six-figure salary, Wheeler’s paychecks were approximately $400 due to wage garnishments.
So, let’s summarize. Brian Wheeler had a history of financial problems and several employees of the administrative staff were aware his wages were being garnished. Some employees knew his six-figure income left him with approximately $400 in take-home pay. Despite these facts, he was put in charge of over $18 million dollars, had the authority to approve invoices, and routinely hand delivered GHAPS-issued checks to a business.
What financial processes did GHAPS have in place?