Updated 04/28/2011 10:09 PM
Investigator: Consultant Stole $3.6M From City Schools
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A former consultant to the Department of Education pleaded not guilty Thursday to stealing $3.6 million that was meant to help increase Internet access at city schools.
William Lanham faces fraud and theft charges.
His lawyer said a statement that Lanham is innocent and actually saved the DOE "at least $10 million."
Lanham's bond was set at $250,000.
DOE officials said they have put new safeguards in place to oversee contractors.
"We agree this is something this should not have happened, and I said that in a statement, but at the same time we've had a number of projects that have gone on extremely smoothly, the majority have, and we've managed it well," said Schools Chancellor Dennis Walcott.
The Special Commissioner of Investigation for city schools says vendors IBM and Verizon played a role by not speaking out sooner.
Both companies say they are cooperating with the investigation.