Duluth Northwood Children’s Services Caught Up In $1 Million Mail Fraud Scam

By KBJR News 1

September 29, 2011 Updated Sep 30, 2011 at 10:15 AM CDT

Duluth, MN (Northland’s NewsCenter) --- Northwood Children’s Services in Duluth has fallen victim to an almost $1 million mail fraud scam.

United States Attorney George L. Beck, Jr. announced that Jonathan Michael Slaughter, 46, of Montgomery, AL has plead guilty to stealing nearly $900,000 intended for 20 school districts or private schools in 13 states.

The money was intended for E-Rate Consulting Services, LLC, a company whose E-rate program gives money to schools in need to use for telecommunications services.

Northwood Children’s Services was supposed to receive almost $25,000.

(Hear the response from the Northwood Children's Services CEO/President in the video.)

Slaughter was owner and president of ECS, and was supposed to forward funds the company received for the E-rate program to its clients. However, between May 2006 and January 2009, instead of transmitting the money, he kept it for himself.

Northwood officials said they are aware of the case and remain in contact with the U.S. District Attorney’s Office for the Middle District of Alabama.

Slaughter faces a maximum penalty of 20 years in prison. He was released on a $25,000 unsecured bond pending sentencing, which is expected later this year.

Posted to the web by Alyssa Kroeten