FARMINGTON – A former Central Consolidated School District employee was sentenced to federal prison for her involvement in a multimillion-dollar scheme that involved stealing and then reselling Apple iPods on eBay that were meant for Native American students in the district.
Kristy Stock, 46, of Waterflow will serve a year and six months and pay restitution of at least $800,000 following a Jan. 11 sentencing hearing in a Baltimore, Maryland, federal court, according to a U.S. Department of Justice news release and court documents.
Stock was convicted of federal charges of interstate transportation of stolen goods and tax fraud as part of a July 16, 2019, plea agreement, according to court documents.
CCSD Superintendent Daniel P. Benavidez thanked the federal authorities for doing their due diligence to make sure justice was served.
“These types of crimes take time, money, and equipment away from our students. They are ultimately the ones that lose out in these situations,” Benavidez said in a statement.
Stock worked for the Central Consolidated School District from 2010 to 2019, overseeing a program to provide Apple iPods to students as part of a program to benefit Native American children living on tribal lands in New Mexico.
She directed federal funds to make bulk purchase orders of iPods from 100 to 250 units per shipment, about two to three times a year.
Stock said she stole more than 3,000 iPods between 2013 to 2019, shipping them to a relative of one of her co-defendants Saurabh Chawla, on the Eastern Shore in Maryland, according to the news release.
Chawla and another co-defendant, James Bender, worked together to sell the stolen iPods online through eBay.
Bender sold the stolen goods through his eBay accounts. Stock would be paid through PayPal, receiving more than $800,000 in funds from the sales of stolen property.
Stock also admitted to falsifying her tax returns for five years, failing to report “significant amounts of taxable income.”
Bender and Chawla were sentenced to six years and six months in federal prison.
Chawla was ordered to pay about $715,000 to the Internal Revenue Service and forfeit a 2013 Tesla Model S along with about $2.3 million from accounts held in his name, according to the release.