New Lothrop superintendent the subject of an active insurance fraud case - Insurance News | InsuranceNewsNet

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May 15, 2024 Newswires
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New Lothrop superintendent the subject of an active insurance fraud case

Argus-Press, The (Owosso, MI)

HAZELTON TWP. — Embattled New Lothrop Area Schools Superintendent Heather Thompson-Luznak is the subject of a fraud case against a Saginaw insurance company, The Argus-Press has found.

According to a case file in Saginaw County District Court, Thompson-Luznak — identified as Heather Thompson — owes Meemic Insurance $23,460 following a 2015 incident in which she claimed a debit card was stolen from a Saginaw County residence, and that someone charged more than $7,000 to the card.

After paying the claim of $7,724, Meemic investigators came to the conclusion that Thompson-Luznak had made the purchases, and that her claim of theft was fraudulent.

The court file includes a letter from ELGA Credit Union of Saginaw, which supports the claim that the debit card charges were made by someone other than Thompson-Luznak. However, when Meemic investigators later questioned ELGA about the letter, credit union representatives said that it didn't come from the institution.

Per Michigan law, a person or entity damaged as a result of another's theft or embezzlement may recover up to three times the amount of the damage, which Meemic pursued and was granted by a Saginaw County District Court judge.

Thompson-Luznak failed to show up for multiple court hearings connected to the case, and, according to files, on Nov. 10, 2020, a civil bench warrant was issued for her. A civil warrant is different than an arrest warrant in that a defendant is not accused of committing a crime, but rather of committing offenses by failing to appear for court hearings.

According to the warrant against Thompson-Luznak, if she has contact with police, she must be taken to Saginaw County District Court for case proceedings. The warrant carries a $3,500 bond, which must be paid before being released if a satisfactory settlement to the case can't be reached.

According to the case file associated with Meemic Insurance, Thompson-Luznak has paid little of the balance she owes. What has been paid was through garnishment of wages, usually in $15 or $20 installments. One of the employers in which Thompson-Luznak saw her paycheck garnished was Grand Rapids-based Axios HR, a human resources services company.

Paperwork in the case file states that garnishment was put on hold in early 2019 when Thompson-Luznak filed for Chapter 7 bankruptcy in the Eastern Michigan District of the United States Bankruptcy Court. The bankruptcy claim was denied, and in October of 2019, a Saginaw County judge revoked the hold on the case.

On May 9, a disclosure was added to the case file that Thompson-Luznak is employed by New Lothrop schools, and garnishment will begin again "if funds available."

Thompson-Luznak has come under fire from parents and other district stakeholders who have expressed displeasure with her performance and questioned her qualifications for the superintenedent post.

At a Friday special meeting, the New Lothrop Area Public Schools Board of Education unanimously approved a resolution requesting Thompson-Luznak "provide the district with official transcripts" and records of numerous "degrees that she listed on her application and resume submitted to the MASB (Michigan Association of School Boards) as part of the district's superintendent search conducted in 2023." According to resolution language, the superintendent must provide the information to the board no later than noon this Friday.

The board will hold another special meeting at 6 p.m. Friday to discuss, and possibly act on, any findings.

Thompson-Luznak has not attended the past three school board meetings, including two in April that were moved to the New Lothrop High School Auditorium in order to accomodate overflow from members of the public.

Thompson-Luznak has not responded to multiple Argus-Press requests for comment. NLAS Board President Richard White has declined to comment on any of the issues involving the superintendent.

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