A grand jury recently charged Gerald Donaldson with two counts of racketeering. Authorities say he funneled the money to himself and others by directing KSU to pay vendors for work at an inflated cost or for services never rendered.
Donaldson oversaw the environmental health and safety department during his tenure, which started in 2002. He had the authority to pay vendors for amounts less than $5,000 without going through a bidding process or needing additional approval from the university, according to Lauren Kane with the state district attorney’s office.
After the university paid for services arranged by Donaldson, Kane said fraudulent vendors would then kick back payments to him through his company, Shane Environmental.
Donaldson was fired from KSU in October 2012, and arrested six months later.
After his arrest, university officials said they revised their contracting practices, including requiring two signatures for payments greater than $2,500 and implementing anti-fraud software.
Four people have also been charged in the alleged kickback scheme: Joseph Eto of Stone Mountain, Ramon Morgan of Detroit, Mich., Don Thomas of Mableton and Lionel Elder of Atlanta. Each was indicted on one count of racketeering.
If convicted, racketeering carries a penalty of five to 20 years in prison, a fine, or both.