Ramona Cunningham, former Central Iowa Employment and Training Consortium chief executive, was sentenced today in U.S. District Court in Des Moines to seven years in prison for misappropriating federal funds.
Cunningham, who entered a plea agreement on 30 federal charges this summer, is believed to have been the instigator and ringleader of a scheme involving $1.5 million in federal funds that were diverted to executive bonuses and salaries from January 2003 to April 2006. Testimony in the case indicated the money intended for job-training programs was used to pay people who didn’t work on the programs and to reward existing employees — people who engaged in gambling or other items of personal interest while supposedly at work.
The U.S. Attorney’s Office of the Southern District of Iowa requested Cunningham be sentenced to 10 years and Cunningham’s attorney asked for home or halfway house confinement, citing Cunningham’s unstable upbringing and recent suicide attempt. In handing down the sentence, U.S. District Judge Robert Pratt said that Cunningham had abused the public’s trust.
Cunningham will also be subject to three years of supervision following her release from prison and has to pay a $725 fine to the Crime Victim Fund. Pratt has asked federal prosecutors to provide the court more information before he sets a restitution dollar amount in the case.
Other individuals involved in the CIETC scandal have yet to be sentenced. Archie Brooks, a former Des Moines city councilman and CIETC board chairman, and John Bargman, former CIETC chief operating officer, are expected to learn their fate in 2009. Karen Tesdell, former CIETC accountant, and Jane Barto, former Iowa Workforce Development executive, are scheduled to be sentenced next week.
A civil lawsuit has been filed by the Iowa Attorney General’s Office in hopes of recouping the misappropriated funds. It is scheduled to begin in April 2010.