The Marmaduke community was rocked Thursday, May 8, with the indictments of three former school employees. Former superintendent and community leader Jerry Don McIntosh, 62, Ray Mike Graham, 53, and James Mark Graham, 53, are facing charges stemming from alleged improprieties involved with fraudulent employment claims.

A federal grand jury met Thursday in Little Rock to issue the indictments. McIntosh and both Grahams are charged with one count each of conspiracy to commit mail and wire fraud in an attempt to defraud the Arkansas Teacher Retirement System (ATRS).

A press release issued by Assistant U.S. Attorney Karen Whatley, prosecutor for the case, says Ray Mike Graham, a former teacher for the Marmaduke School District, was contracted as a bus driver from 1990 to 2002. James Mark Graham, a former teacher at the Knobel and Greene County Tech School Districts, was contracted to drive buses at Marmaduke from 1993 to 2001. The indictment claims the Grahams entered into the bus driving contracts in order to accumulate the years of service needed to be eligible for early retirement benefits from the ATRS. It also claims neither Graham drove buses enough days to accrue years of service. In order to obtain credit for a full year of service, the employee must work at least 120 days during the school year.

The indictment claims McIntosh "would provide and cause to be provided information from the Marmaduke School District to ATRS stating that Ray Mike Graham and James Mark Graham had worked the required number of days to be eligible for early retirement benefits."

The indictment also states each Graham "endorsed the paychecks he received for driving the bus and paid the funds to the persons known to the Grand Jury who had actually driven the bus." The indictments say these practices occurred from on or before Sept. 10, 1998. James Mark Graham reportedly began receiving monthly retirement benefits in July 2001. Ray Mike Graham is said to have received monthly benefits beginning in July 2002.

The ATRS calculates and pays retirement benefits to former public school district employees based upon amount of contribution, years of service, high three years of salary and age. ATRS receives the information necessary to make its calculations through reports submitted by the school districts.

The indictments have been a joint effort of the U.S. Attorney's Office, Arkansas State Police and Federal Bureau of Investigation.

In an official statement, Colonel Winford Phillips, director of the Arkansas State Police said, "These types of cases shake the foundation of trust our citizens have in their elected and appointed leaders and that's why this case in particular has been a priority for our department so that a clear message is sent to the public that this type of criminal enterprise will not be tolerated."

No trial dates have been announced at this time.