Attorney General Brnovich Announces 4 Individuals Indicted in Fraud Scheme Related to Higley School District Published: 24 July 2021 24 July 2021
Phoenix, Arizona - Attorney General Mark Brnovich announced today that a State Grand Jury indicted Denise Birdwell, Gary Aller, Steven Nielsen, and Kay Hartwell Hunniuctt for their alleged role in the procurement for construction of the Elona Ranch and Sossaman middle schools in Higley Unified School District (HUSD).
HUSD was required to follow the procurement process when issuing Request for Proposal 013-203. The procurement process prohibits any party that provides input on a project from receiving any direct or indirect benefit from the project. The indictment alleges that in 2012, Birdwell, who was HUSD Superintendent at the time, was aware that Aller and Nielsen had participated in the pre-bid process which provided a competitive advantage to a bidding company owned by Aller and Nielsen, Education Facilities Development Service
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Authorities say while Denise Birdwell was running the Higley Unified School District, she was lining her own pockets with money she got in a kickback scheme involving school construction.
The Attorney General s Office said the four were involved in a fraud scheme tied to rigged contracts that cost taxpayers millions of dollars. Prosecutors accused Birdwell of taking payments for helping a company win a bid for building two middle schools in 2012.
Birdwell also misspent $6 million of public money that she diverted from a restricted fund to help cover construction costs related to the contracts, prosecutors said.
The indictments punctuate years of allegations that followed Birdwell from Higley to Scottsdale unified school districts from 2011 until 2018 when she was forced out of her job.
An investigation by the Arizona Auditor General’s Office has found former Higley superintendent Dr. Angela Denise Birdwell, her close associate, Kay Hartwell Hunnicutt, and two Higley vendors, Gary Aller and Steven Nielsen may have violated State procurement laws.
The investigation requested by the Arizona Attorney General’s Office found that the violations stem from a $2,557,125 Project development services contract.
The Auditor General Office submitted its report to the Arizona Attorney General’s Office, which on July 13, 2021, presented evidence to the State Grand Jury. The action resulted in the indictment of:
• Birdwell on 18 felony counts related to procurement fraud, fraudulent schemes and practices, fraudulent schemes and artifices, misuse of public monies, conflict of interest, filing a false return, and conspiracy.
Denise Birdwell left Scottsdale job in 2018 amid similar allegations. Author: Brahm Resnik Updated: 7:29 PM MST July 22, 2021
SCOTTSDALE, Ariz. The former superintendent of the Scottsdale Unified School District has been charged with 18 felony counts connected to alleged fraud involving a $2.5 million procurement contract when she was superintendent of the Higley Unified School District.
The charges against Denise Marie Birdwell were disclosed Thursday in a report by the Arizona auditor general s office, which investigated financial transactions at the Higley school district from 2012 to 2016.
The investigation focused on the possible misuse of public money in building two new schools.
Among the charges against Birdwell: