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Oklahoma auditor report alleges more details of embezzlement scheme at Tulsa Public Schools

The Tulsa Public Schools Board of Education sign sits outside of its administrative building in Tulsa.
Angel Ford
/
Public Radio Tulsa
The Tulsa Public Schools Board of Education sign sits outside of its administrative building in Tulsa.

Chris Hudgins is the former TPS Executive Director of Bond and Energy Management. In June, state Attorney General Gentner Drummond filed charges against him and two partners of Tulsa engineering firm, Allied Engineering, based on the results of the first audit.

The partners were Gayle Gwinup and Thomas McKenna. They currently face 27 counts, including conspiracy and embezzlement.

The first audit report released in February 2025 had more than 1,450 findings.

Hudgins resigned from TPS shortly after the audit findings were released to district officials.

At their August arraignment, Gwinup, McKenna and Hudgins pleaded not guilty. Their next hearing is Sept. 23.

According to the report, Hudgins orchestrated a scheme in which Allied fraudulently invoiced the district for work not performed. The company allegedly retained around 5% and sent about $2.6 million to Hudgins' personal company, M&G Consulting.

Hudgins allegedly conspired with Allied to submit invoices to the district using billing amounts he provided, including charges for "architectural services" Allied was not authorized to provide, according to the report.

Gwinup told investigators Allied agreed to the fund transfers because Hudgins had the authority to assign projects to the engineering firm. It was an "on-call" company for the district.

The company retained payments for services never rendered, including roofing, interior renovation and HVAC projects, according to the audit.

Hudgins allegedly authorized a company formed by Allied employees called GLD Consulting, LLC to manage the Public Service Oklahoma rebate process for the district without the school board's approval. According to the report, GLD retained 30% of the rebate, which equaled $547,782.

Byrd said in a news release the TPS school board "rubber-stamped" almost every recommendation Hudgins made.

"Government employees should never be allowed to exercise unilateral control over public finances," Byrd said. "Sadly, each dollar wasted was a dollar that never reached the classroom where it was really needed."

Byrd's office sent the findings to the attorney general and Tulsa District Attorney Steve Kunzweiler.

Drummond said in a release that additional charges are on the table.

"This audit confirms what our June charges already made clear — bond dollars meant to repair and improve Tulsa schools were instead treated as someone's personal piggy bank," Drummond said. "My office is reviewing the full audit now, and we are not finished.

TPS Superintendent Ebony Johnson said in a statement to StateImpact the district added safeguards to ensure more transparency in financial reporting and intends to "pursue all legal remedies to receive full restitution."

"Our students and our school communities deserve every dollar meant for them," Johnson said. "We intend to fight to ensure the district is made whole and remain fully committed to supporting all relevant agencies pursuing justice in this matter."

StateImpact Oklahoma is a partnership of Oklahoma's public radio stations which relies on contributions from readers and listeners to fulfill its mission of public service to Oklahoma and beyond. Donate online.

Beth Wallis
Beth Wallis
StateImpact Oklahoma
StateImpact Oklahoma