Former St. Joseph school leader pleads guilty to $660,000 fraud

A former school superintendent in St. Joseph pleaded guilty Monday to a federal charge related to a $660,000 pension fraud scheme.

Danny L. Colgan waived his right to a grand jury during during a brief Monday morning appearance in U.S. District Court in Kansas City.

Colgan, 70, admitted that he caused others to falsely report his salary to state officials for the purpose of increasing the retirement benefits he was entitled to receive.

He was superintendent of the school district from 1992 until he retired in 2005, according to federal prosecutors.

Prosecutors said Monday’s guilty plea was the result of an extensive investigation into “fiscal wrongdoing” involving the district. They said that they do not anticipate charges against any other people.

According to prosecutors, Colgan was paid hundreds of thousands of dollars in excess benefits over a 10-year period.

As part of Colgan’s guilty plea to one count of wire fraud, attorneys will recommend that Colgan serve one year in federal prison. He must also make restitution of $662,660 as part of the plea agreement.

A sentencing date has not been set.

St. Joseph school officials said in a written statement that the plea was the end of a “dark chapter” in the history of the district.

As a result of the investigation, the district said it has instituted new safeguards and procedures to ensure that taxpayer funds entrusted to the district will be used properly.

This story was originally published June 13, 2016 at 3:50 PM with the headline "Former St. Joseph school leader pleads guilty to $660,000 fraud."