Dayton, Ky. school board to announce civil litigation settlement with former superintendent

DAYTON, Ky. – One part of the case against a former Dayton Independent School district superintendent accused of stealing $224,00 from the system he managed for 15 years will come to a close on Thursday, Nov. 21.

Current school district officials, along with the Kentucky State Auditor and associate commissioner of education, will hold a press conference announcing a civil settlement between William Gary Rye, the school board and state auditors at 2 p.m. at the Dayton Board of Education office.

“The criminal part is still ongoing through the FBI,” said current superintendent Jay Brewer. “We’ve come to an agreement with him.”

In the fall of 2012 Brewer approached state auditor Adam Edelen with concerns over the financial activities of Rye. Brewer replaced Rye as superintendent, who retired in the spring of 2012.

The proceeding audit of the school district’s finances revealed that $146,276 in retirement related benefits were given to Rye without the board’s approval.

In addition, the audit claims that Rye improperly took:

> $47,429 for sick and annual leave days. The board did not approve some of the leave; some leave was taken but not deducted from his leave balance.

> $21,464 in fuel purchases for his personal vehicle charged to a district credit card.

> Nearly $10,000 in false reimbursement claims.

The audit report indicated Rye intimidated and threatened staff responsible for issuing checks if they questioned him.

The school district’s attorney, Matt DeMarcus, said the FBI was investigating possible criminal charges against Rye and the small Dayton district is "aggressively pursuing every penny.”

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