Former Biloxi superintendent used school funds, resources for daughter’s wedding, lawsuit says
While working as superintendent, Arthur McMillan spent Biloxi School District money, and used district labor and equipment, for his daughter’s May 2018 wedding, a lawsuit filed in federal court says.
Former school district employee Victoria Conway says in her lawsuit that she tried to stop the “illegal activities” by reporting them to a school board member. Instead, she says, she was harassed and eventually fired.
The lawsuit says Conway and her mother, longtime district employee Lee Ann Dubaz, compiled a list that included Conway’s complaints and unrelated allegations from other employees. The list wound up in McMillan’s hands, Conway says.
Dubaz also reported the allegations to State Auditor Shad White, whose office launched an investigation. The State Auditor’s Office has since declined all comment on the investigation.
Dubaz, a 38-year district employee, recently lost her job as administrative assistant to the superintendent. Current Superintendent Marcus Boudreaux, hired in January, moved her from administration offices to a nearby annex, where, the lawsuit says, she continues to work as school board clerk and district historian.
In addition to the school district and McMillan, Conway is suing district Business Manager Shane Switzer, who is responsible for finances; her former supervisor, Dixie Eleuterius, director of the Child Nutrition Program; and school board president Jim Wallis.
School district attorney Henry Dick said he could not comment on pending litigation. The district’s legal response is not yet due and is not on file in U.S. District Court.
In the lawsuit, Conway claims malicious interference with her job and civil conspiracy. Her attorney, Jim Waide of Tupelo, filed the lawsuit in federal court because, the lawsuit says, the district violated her First Amendment right to free speech.
She hopes to include in an amended complaint claims that the district violated state and school whistle-blower protection policies.
She is seeking compensation for lost income, mental anxiety and psychological damage, plus punitive damages. She also wants to recover attorney’s fees and reasonable expenses.
Biloxi school punishes whistle-blower
Conway says she worked for more than 10 years as administrative assistant for the department that manages the federally funded child nutrition program.
Her job, she says, gave her “direct knowledge” of funds, equipment and employee labor for the wedding of McMillan’s daughter at Enterprise Baptist Church.
She went to Dubaz with the allegations. The women took Conway’s complaints, plus the allegations from other district employees, to school board member Jane Meynardie.
The lawsuit says:
“The illegal activity of which plaintiff (Conway) had personal knowledge was the use of School District funds for the benefit of former Superintendent/Defendant McMillan to pay for supplies and equipment used in the wedding of Defendant McMillan’s daughter, as well as use of school equipment without recompense and the use of labor by school employees during school hours at the school’s expense to deliver and set up tables, and do other work for the wedding.
Conway and Dubaz hoped the school board would investigate and stop “the illegal activities,” the lawsuit says.
Dubaz also notified the State Auditor’s Officer, which started an investigation in October 2018.
McMillan pinpointed Conway as the source of complaints about school resources used for the wedding, she says, because she worked in child nutrition and would have been one of the few employees with direct knowledge of what happened.
She says McMillan and Switzer retaliated against her through her supervisor, Eleuterius.
“Defendant Eleuterius’ harassment of Plaintiff consisted of refusing to speak to Plaintiff (Conway), slamming doors and file cabinets, tossing paperwork, shutting Plaintiff out of her office, and refusing to speak to her,” the lawsuit says.
“The mistreatment became so severe that Plaintiff suffered psychological harm, necessitating psychological treatment.”
School board policy forbids retaliation
The auditor’s investigation has been public knowledge since November 2018, when the Sun Herald obtained a copy of a letter Conway wrote the School Board. In the letter, she outlined her attempts to stop “impropriety and Illegal activities,” and the retaliation she suffered.
The lawsuit for the first time publicly reveals her allegation that school resources were used for the wedding.
School Board discussions of the complaints have been held in executive session under the state open meeting law’s exemption for personnel matters.
The school board adopted its whistle-blower policy Oct. 24, 2018, according to a copy. The policy forbids retaliation against whistle-blowers and outlines action the board can take against any employee retaliating, including termination.
In a Nov. 13, 2018 memo to administration employees, the school board acknowledged the auditor’s investigation and made it clear employees should cooperate only through personnel director David Nichols.
Nichols, the memo said, was serving as the auditor’s district contact. The memo said, in part:
“Do not take it upon yourself to locate for and/or provide information related to this investigation to anyone outside of the District. This will allow the District to preserve evidence, ensure confidentiality is maintained when necessary, and to use District resources efficiently and wisely.”
The letter also warns employees that they will face a school board investigation if they “intimidate or harass” another employee.
Superintendent McMillan abruptly retires
Meanwhile, Arthur McMillan remained in his job as superintendent. The board hired Gulfport attorney Tim Holleman to conduct an internal investigation of the allegations presented to the state auditor.
Holleman reported on his investigation in an executive session on May 14, 2019, school board minutes say.
McMillian joined the May 29, 2019, school board meeting by teleconference, board minutes say. The board held an executive session on personnel matters. By mutual agreement, the minutes say, the board then accepted McMillan’s resignation, effective two days later.
McMillan told the Sun Herald that he was retiring to take care of his mother. He has not been charged with any wrongdoing.
Former school superintendent Larry Drawdy stepped in to fill the job until the school board in January hired Marcus Boudreaux to manage the 6,300-student district. Boudreaux had previously served as principal of Biloxi High School and is a longtime district employee.
