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Former Indiana school CFO, assistant superintendent charged for using nearly $500K in funds for personal use

Scott Bumgardner allegedly bought gift cards while employed at two districts that he said he was going to give to employees and contractors for their hard work.

MARION, Indiana — The former chief financial officer for Marion Community Schools, who was previously an assistant superintendent for Huntington County Community School Corporation, is facing more than 20 charges in separate cases after he allegedly used nearly $500,000 in school funds for personal use.

In November 2023, Grant County prosecutors filed charges against Scott Bumgardner, 50, of Wabash, on one count of theft. Bumgardner's jury trial in this case is scheduled for Monday, April 22.

Then, Huntington County prosecutors filed charges March 19, 2024, against Bumgardner on one count of corrupt business influence and 19 counts of theft. His initial court hearing in this case is scheduled for Monday, March 25.

Huntington County case

According to court documents, Bumgardner worked at the Huntington County Community School Corporation from August 2018 to March 2022.

Court documents say Bumgardner ordered 618 gift cards, totaling $462,350, from April 9, 2020, through Oct. 22, 2021, to give to contractors and subcontractors as an incentive and additional compensation for working on building projects during the COVID-19 pandemic.

However, an Indiana State Police detective spoke with the project manager and site superintendents for the construction work, who said they had not gotten any gift cards from Bumgardner, nor had any subcontractors.

The ISP detective then spoke with school employees, with 36 people confirming they accepted gift cards from Bumgardner as they continued working in-person during the COVID-19 pandemic, while others were still getting paid to work from home. These gift cards totaled $7,400, leaving $458,202 worth of gift cards purchased by Bumgardner through the school district's checking account still unaccounted for.

Court documents say Bumgardner also allegedly altered an email between him and the project manager, that said some subcontractors "received the benefit" to imply Bumgardner had rewarded them for their work. Another email that was altered allegedly indicated Bumgardner had already given the project manager extra money toward the project.

A representative from the bank allegedly reached out to the Chad Daugherty, who was the superintendent at the time, in regards to the "frequency and dollar amounts" of the gift card purchases.

According to court documents, Daugherty downplayed the bank's concerns. The ISP detective believes Bumgardner was in Daughtery's office while he was responding to the bank's email.   

Grant County case

Marion Community Schools hired Bumgardner as it chief financial officer in July 2023.

In August 2023, Bumgardner got his corporate credit card, and he signed an agreement detailing what the card could be used for.

Court documents say Bumgardner charged a total of $26,728.65 to his corporate credit card from Aug. 31 to Oct. 8, when the card was canceled by school staff.

Of the more than $26,000 charged on Bumgardner's corporate credit card, the ISP detective said $703 has been accounted for, leaving $26,025.65 unaccounted for. Bumgardner allegedly provided receipts for 10 out of the 29 purchases he made with the card.

When asked about the charges, Bumgardner allegedly said he bought gift cards to give to certain employees as a reward for their hard work.

Court documents say the superintendent and human resources director called Bumgardner about the irregularities on the corporate credit card, which he allegedly replied that all of the gift cards had been spent and he was in a "bad spot" and "beyond help." Bumgardner allegedly told them he would resign and go away before he was placed on suspension without pay.

The ISP detective then spoke with Bumgardner, who allegedly admitted to having an ongoing gambling problem, which he said cost him his marriage and financially ruined his life.

Marion Community Schools confirmed Bumgardner's employment ended Oct. 13.

"We are grateful to our Business Office staff for their vigilance," Superintendent Keith Burke said. "Taxpayers can rest assured that we take our responsibility with their money very seriously."

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