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Ex-Orangeburg school official pleads guilty to defrauding district out of $550,000

The former employee is accused of buying equipment and then selling it to the school district through companies he controlled - and for a substantial markup.

ORANGEBURG COUNTY, S.C. — An Orangeburg County man pleaded guilty on Thursday to defrauding the school district he worked for out of more than half a million dollars.

According to the U.S. Department of Justice, the plea followed a lengthy federal investigation into an incident involving 30-year-old David Cortez Marshall Jr. who previously worked for the Orangeburg County School District.

According to evidence obtained in that investigation, Marshall, a former media communications specialist with the school district developed the scene by using shell companies and forged and fabricated documents along with a false identity to steer the district into entering contacts with companies he secretly created. He then sold cameras he had purchased for the school district but for what court documents described as a "substantial markup."

He was also accused of receiving funds from the district that he never paid to the original seller for cameras.

Through the scheme, federal investigations found that Marshall received more than $550,000 in illegal proceeds. However, the elaborate plan was soon uncovered by district employees who confronted him and prompted an FBI investigation.

"Throughout the pandemic, individuals like Marshall have created schemes and exploited programs designed to aid the public,” FBI Columbia Special Agent in Charge Susan Ferensic said in a statement. “Unfortunately, Marshall misused his position to commit fraud against a school district and line his own pockets."

She further said that she hoped his arrest serves as a reminder to others who might follow a similar path that it will also meet a similar end.

That end, for Marshall, could be up to 20 years in federal prison on charges of wire fraud as well as restitution and a fine of up to $250,000.

United States Attorney Corey Ellis described the crime as reprehensible - especially since it involved a school district in the midst of financial difficulties that so many are facing during the pandemic.

"This office will continue to prosecute those who try to use the pandemic, or any other circumstance, to enrich themselves at the expense of hard-working taxpayers and critical institutions,” Ellis said in a statement from the Department of Justice.

Marshall's attorney Jonathan Harvey spoke after Thursday's hearing.

“Mr. Marshall is moving forward with his case. He looks forward to having a full and fair judicial process and wants to have the case reach resolution.”

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