Musser lawsuit settlement released
April 13, 2015
By Sam Zeff
The troubles are far from over, but Missouri's St. Joseph School District finally put one legal hurdle behind it on Friday.
The district announced that it was paying Chief Financial Officer Beau Musser $450,000 to settle a slander lawsuit. The full agreement can be read here.
The district and the three named plaintiffs admitted no wrongdoing. "...the Released Parties specifically deny any wrongdoing and deny having violated Mr. Musser's rights under any federal, state, or local statute or law," according to the settlement.
The St. Joseph Board of Education voted last month to settle the case, but details were withheld until all the parties signed off on the agreement.
The district’s liability insurance carrier will make the payment.
Soon after he was hired, Musser discovered that Superintendent Fred Czerwonka secretly paid $5,000 stipends to 54 administrators. According to the lawsuit, when Musser expressed concern about the legality of payments made without board approval, he was ignored by Czerwonka and Human Resources Director Doug Flowers. When Musser pressed the issue, the lawsuit alleged, Czerwonka and Flowers offered to buy out his contract in return for Musser's silence and resignation.
Musser was then accused of sexual misconduct and placed on administrative leave. He was later cleared and returned to work last November. "This should, without a doubt, clear my name once and for all. I feel vindicated and I'm happy to have this behind me," says Musser.
The stipends opened the door for the current FBI and federal grand jury investigations and for a scathing state audit that discovered at least $40 million in unapproved stipends going back to 2000.
Czerwonka was fired and Flowers was demoted after the audit was released.
The district wouldn't comment but board member Chris Danford, who also blew the whistle on the stipends, was pleased with the settlement. "I'm relieved that this is behind us now so that we can more forward."
Many of the district's troubles still remain. Czerwonka is fighting his dismissal, and a hearing before the board in executive session is expected in the coming weeks.
The current interim superintendent, Dr. Jake Long, just announced he's taking a new job in Arkansas.
And a federal grand jury in Kansas City issued a fourth subpoena for documents to the district two weeks ago. The investigation has apparently spread to the West Plains School District in southern Missouri. Czerwonka was superintendent there before being hired in St. Joseph two years ago.
Sam Zeff covers education for KCUR in Kansas City, Mo. He's won a National News Emmy for investigative reporting, four National Headliner Awards and four Edward R. Murrow awards. Zeff has managed newsrooms in Minneapolis, St. Louis and Kansas City. He was educated at the University of Kansas.
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