The San Joaquin County District Attorney’s Office, with the U.S. Attorney’s Office and Federal Bureau of Investigation, launched a criminal investigation into Stockton Unified in April 2023, after a state audit by the Fiscal Crisis & Management Assistance Team (FCMAT) found evidence that fraud, misappropriation of funds or other illegal fiscal practices may have occurred between July 2019 and April 2022.
The school district spent millions of dollars in federal Elementary and Secondary School Emergency Relief (ESSER) funding on a contract for COVID-19 sanitation equipment provider IAQ Distribution, Inc. in 2021. FCMAT said the contract “should have been bid competitively,” but “the district and board ignored their own policies, procedures and past practice in order to award the contract to their preferred vendor.” IAQ wasn’t even a licensed contractor in California at the time the contract was awarded.