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[r25] Delphi Community Schools to receive almost $600,000 from lawsuit settlement
Start Date: 12/3/2013Start Time: 8:00 AM
End Date: 12/3/2013End Time: 8:00 AM
Entry Description
STATEHOUSE – State Representative Don Lehe (R-Brookston) is pleased to announce that Delphi Community Schools will receive $590,303.35 from the finalized settlement of a federal securities fraud lawsuit for $14 million with the Indiana State Teachers Association (ISTA) and the National Education Association (NEA).   

“It’s disheartening to hear that these two organizations, ISTA and NEA, intentionally mismanaged dollars that should have gone directly toward benefitting our students, teachers and administrators,” Rep. Lehe said. “Hoosiers place a high value on quality education, and I know Delphi schools will be pleased to see at least a portion of the funds returned. Secretary of State Connie Lawson did a great service to our schools and deserves many thanks for her perseverance and unwavering dedication to bring these bad actors to justice.”

This lawsuit started in 2009, accusing ISTA and NEA of defrauding Hoosier schools out of more than $27 million. ISTA and the NEA sold health plans with benefits, which were unregistered securities, to 27 school corporations. ISTA and the NEA then used the money from those health plans for their own benefit to cover funding shortfalls and for risky investments, instead of investing on the schools’ behalf as promised. ISTA has 10 days to pay the Secretary of State’s office the $14 million which will then be distributed to the school corporations to compensate for their lost investments.  

“ISTA took money from one fund to pay claims and cover deficiencies of another, then issued falsified statements to clients to create the illusion of funds,” said Secretary Lawson. “This is a classic example of a Ponzi scheme. ISTA and the NEA have repeatedly tried to play the victim and have made multiple attempts to dismiss the case. The truth is they intentionally misled those they claim to support and protect to cover their own shortfalls and to invest in risky securities for their own benefit. They have a moral obligation to repay the full amount.”

This litigation was not paid for with taxpayer dollars.  All legal fees were paid with fines collected from violators of Indiana’s securities laws.  The Secretary of State’s office also waived the right to collect fines against ISTA and the NEA and to seek repayment of attorney fees in order to put as much money as possible back into the schools.


State Rep. Don Lehe serves as Chairman of the Agriculture and Rural Development Committee. He also serves on the Environmental Affairs Committee and the Public Health Committee.  Rep. Lehe represents portions of White, Cass, Carroll, Clinton and Tippecanoe Counties.

Contact Information:
Name: Maggie Johnson
Phone: 317-232-9693
Attachments For This Entry:
    > Delphi Community Schools to receive almost $600,000 from lawsuit settlement
Entry Type:
Press Release
Entry Category:
  • Alerts and Notification
  • Category:
  • Government
  • Agency Name
    House of Representatives Republican Caucus

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