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Whistleblower Lawsuit Filed Against Penn Hills School District

PENN HILLS (KDKA) -- The former business manager in the Penn Hills School District has filed a whistleblower lawsuit against the district, the superintendent and the school board president.

Richard Liberto, the school district's former business manager, was placed on leave by the district in March. He says the school district ignored his warnings about financial problems. The district now has an $18 million debt.

Liberto now works for the Wilkinsburg School District.

Penn Hills School District board president Denise Graham-Shealey responded to the lawsuit with the following statement:

"This is a case of smoke and mirrors! Any reference to another suit that was filed months ago is suspect, along with the timing of this latest suit. The Penn Hills Board of School Directors met only days ago to review due process hearing testimony and exhibits, and a final decision in this personnel matter is expected to be released publicly on November 23. We will not respond to any allegations regarding students having documented disabilities; however, the suggestion that a Board member would need to arrange related services for any such child makes no sense. We have a whole department devoted to ensuring we are in legal compliance with plans devised to support students with disabilities."

Superintendent Dr. Nancy Hines made the following statement:

"There is absolutely and unequivocally no truth to these allegations. We believe this disgruntled employee who was accustomed to working in an environment with no checks and balances is retaliating against the administration's attempt to impose a higher standard. It is shocking and disheartening to see someone resort to this level of misrepresentation. Clearly, we've had a problem in Penn Hills. Why else would the PA Auditor General have sent a team of investigators to review documents and practices specific to the Business Office and other related departments?"

In August, the Pennsylvania Auditor General said he was planning to investigate the school district's finances.

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