State Has $14-Million Settlement With Teachers Unions
August 13, 2013 — Indiana Secretary Of State Connie Lawson says the State has a settlement with state and national teachers organizations for defrauding Hoosier teachers out of more than $27-million.
Lawson’s office says the Indiana State Teachers Association and the National Education Association will pay $14-million to Indiana school corporations to compensate for their lost investments.
Secretary Lawsons says ISTA and NEA sold health plans to 27 school corporations and then made misrepresentations regarding the unregistered securities.
Lawson says ISTA inappropriately used teacher payments to cover significant shortfalls in its long-term disability plan and issued inaccurate statements. She says the agencies perpetrated a ponzi-like scheme to create the illusion that investment funds existed after they had been misappropriated.
The settlement must be agreed upon by each school corporation.