The Roslyn Public Schools Board of Education has filed suit against 10 current and former members of the board, alleging a breach of fiduciary responsibility. The board had authorized the initiation of the lawsuit at its meeting of March 31.
According to the report of the New York State Comptroller released in March, $11.2 million was misappropriated from the school district during the period of 1998 to 2004. Named in the suit are the seven trustees who were on the board in the fall of 2002 when the alleged theft of district funds first came to the board's attention, in addition to three others who were no longer on the board but who served during the period of time when the former superintendent and other school personnel are alleged to have embezzled district funds.
The complaint alleges that by virtue of their breaches, former and current members of the board caused significant economic damage, as well as irreparable harm and injury to the school district. It is alleged that the board members did not exercise due care or due diligence, nor did they fulfill their responsibilities and fiduciary duties as elected officials, in that they failed to properly monitor, detect or recognize the theft of millions of dollars stolen by former school district employees even after certain board members were aware that the certain acts of fraud, embezzlement and misappropriation had occurred.
The complaint seeks damages of not less than $11.2 million. Moreover, the complaint alleges that certain members of the board wrongfully came into possession of the school district's property.