Milwaukee Public Schools is trying to recover nearly half a million dollars after the district says it was scammed in a bank impersonation fraud scheme.
The district lost around $450,000 initially when an external party impersonated U.S. Bank, where the district holds some of its funds.
As of Tuesday, U.S. Bank had been able to recover $255,000, according to a news release from the district. The district hasn't released any further details about how or when the payments to the fraudster took place, only that MPS became aware of the incident on Nov. 2.
MPS Superintendent Dr. Brenda Cassellius called the incident a “sobering reminder of the sophisticated financial scams that occur every day across the country.”
In response to the incident, MPS has removed Chief Financial Officer Aycha Sawa from the role she’s held since fall 2024. She is reportedly still employed by the district.
Sawa is a certified public accountant and prior to coming to the district, she served a four-year term as the City of Milwaukee’s comptroller.
Bank fraud scam comes after years of MPS financial woes
This comes after a tumultuous couple of years for the district’s finances.
The district failed to file some financial forms on time in 2024, resulting in the delay of some state funding.
MPS overspent its budget by $46 million that school year, and recently reported that the budget deficit grew to $58 million last spring even after job cuts.
The district's total budget is around $1.6 billion.
In an email to staff, Superintendent Cassellius reminded the district’s finance team about best practices when authorizing payments, including verifying payment requests made outside of normal business hours or those communicated with unusual urgency.
MPS’s deputy chief financial officer Jennifer Buros will fill the CFO position while the district investigates the loss.
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