Crime & Safety

Key Figure in DPS Corruption Lived Large in Farmington Hills

Norman Shy, 74, was living in opulence while he cheated struggling Detroit Public Schools, federal prosecutors say.

FARMINGTON HILLS, MI – The vendor at the center of a multi-million-dollar kickback and bribery scheme involving 13 Detroit Public Schools current and former administrators was living large in Farmington Hills before moving to Franklin in 2014.

Norman Shy, 74, owner of Allstate Sales, allegedly conspired with the administrators from 2002 to 2015 to certify and submit fraudulent invoices for school supplies that were never delivered. Shy and his company billed the financially struggling school district for more than $5 million during that period, $2.7 million of it in fraudulent billings, the Justice Department alleges.

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A dozen current and former principals and an assistant superintendents allegedly received $1 million in kickbacks and bribes for falsifying the invoices that allowed Shy to operate the scam for more than a dozen years, according to federal indictments handed down last month.

According to Zillow, the 11,000-square-foot estate where Shy lived for much of that time cost $5 million to build and sold for $2.4 million in 2014.

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Zillow describes it as a “magnificent, award-winning estate” situated on a private, 2.4-acre wooded site.

The opulence begins at the threshold, which opens to a grand, two-story marble foyer with a crystal chandelier, sweeping double-curved staircases, and brass and iron railings. It has solid mahogany wood doors with crystal knobs and .24 karat gold plated fixtures.

Other amenities include a marble master bath with mother-of-pearl insets and crystal sinks, walkout balconies on six bedroom suites, a sky-lit lap pool and hot tub, a gourmet kitchen and two banquet rooms, an elevator, six front porches.

Corruption Scandal Rankles Contractors

The Detroit Free Press reports that contractors who worked on the sprawling estate were rankled when they learned of the scandal.

Shy filed eight lawsuits alleging poor workmanship and sought $500,000, though the lawsuits were settled for far less. However, the general contractor, Donald Worthington, told the Free Press he was forced to shutter his West Bloomfield company, Affinity Building, because of the lawsuit, which he settled for $25,000.

"I certainly didn't like him. He was using attorneys to break me," Worthington, who had been building houses for 40 years, told the Free Press "This was the only house I ever had any problems with."

Worthington said Shy rarely used checks to pay for the work, and once handed him a wad of $100 bills held together with a rubber band to cover a $5,000 bill.

Christopher Andreoff, Shy’s attorney, told the Free Press that restitution may be part of the deal Shy is trying to reach with federal government to resolve the case against him. He has been charged with one count each of conspiracy to commit federal program bribery and tax evasion for failure to report income.

Shy reportedly feels badly and is accepting responsibility for his actions, his attorney said.

"He’s an older man; he’s 74 years old,” Andreoff told the newspaper. “He has some major health considerations. This will be a horrible financial setback for him and his family."

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